If the Returns of Two Firms Are Negatively Correlated, Then

question 29

True/False

If the returns of two firms are negatively correlated, then one of them must have a negative beta.

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Definitions:

Median

The middle score in a distribution; half the scores are above it and half are below it.

Critical Thinking

The process of methodically analyzing and judging an issue to conclude.

Round Numbers

Round numbers are numerals that are typically whole and end in one or more zeroes, making them easier to understand, remember, and use in calculations or comparisons.

Depression

A behavioral disorder characterized by a consistent depression or disinterest in activities, which extensively hampers one’s daily lifestyle.