Security a and Security B Have a Correlation Coefficient of 0

question 54

Multiple Choice

Security A and Security B have a correlation coefficient of 0. If Security A's return is expected to increase by 10 percent, Security B's:

• A) return should also increase by 10 percent.
• B) return should decrease by 10 percent.
• C) return should be zero.
• D) expected return is impossible to determine from the above information.

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Definitions:

Dopamine Antagonist

A type of medication that blocks dopamine receptors, often used to treat neurological and psychiatric disorders.

Dopamine Agonist

A class of medication that mimics or stimulates dopamine receptors in the brain, often used in the treatment of Parkinson's disease and restless legs syndrome.

D-2 Enhancer

A compound or substance that increases the activity of the D2 dopamine receptor, potentially affecting mood and behavior.

Viral Theory

The hypothesis that some diseases, particularly mental illnesses, are caused by viruses or other infectious agents.