If Two Stocks Are Perfectly Positively Correlated,then an Increase in One

question 40

True/False

If two stocks are perfectly positively correlated,then an increase in one of 10% will be associated with a decrease in the other of 10%.

---

Definitions:

Foreign Producers

Manufacturers or producers located in a country or jurisdiction different from where their products are sold or consumed.

Wage Increases

Adjustments or rises in the amount of money that workers are paid for their labor, often seen as a reflection of economic growth or inflation.

Real Wages

Wages adjusted for inflation, representing the purchasing power of the income received by workers.

U.S. Automobile

Vehicles manufactured by companies based in the United States, typically referring to cars and trucks.