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:

Martin Seligman

A psychologist known for his work on positive psychology, learned helplessness, and theories on well-being and happiness.

Dissociative Amnesia

A mental disorder characterized by memory loss that is more significant than normal forgetfulness and cannot be attributed to a specific physical or psychological cause.

Memory Loss

A condition characterized by the inability to remember information or experiences that were previously known, affecting both short-term and long-term memory.

Traumatic Event

An emotionally distressing experience that can lead to lasting psychological and emotional impact, often involving a perceived threat to safety or stability.