A Negative Covariance Between Two Securities Implies That an Increase

question 24

Multiple Choice

A negative covariance between two securities implies that an increase in returns on one of the assets is associated with _________________

• A)An unrelated change in the returns of the other asset
• B)No change in the returns of the other asset
• C)An increase in returns in the other asset
• D)A decrease in returns of the other asset

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