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If Security a Has a Correlation of 0

question 1

True/False

If security A has a correlation of 0.5 with security B, it indicates that security A causes half of the movement in security B.


Definitions:

Quid Pro Quo

A Latin phrase meaning "something for something," referring to an exchange of goods, services, or favors, where one transfer is contingent upon the other.

Equal Employment Opportunity Commission

A federal agency tasked with enforcing laws prohibiting discrimination in the workplace.

Settlement Fails

Occurrences in securities trading where a trade cannot be settled as scheduled due to reasons like insufficient funds or securities.

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