The Returns of Two Firms Are Negatively Correlated, Then One

question 39

True/False

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

---

Definitions:

Catatonia

A behavioral syndrome marked by an inability to move normally, which can include symptoms such as muscular rigidity or stupor, often associated with psychiatric conditions.

Waxy Flexibility

A symptom seen in catatonic schizophrenia where an individual’s limbs remain in positions they are placed in by someone else.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, with symptoms that may include delusions, hallucinations, and disorganized speech.

Antipsychotic Medication

Drugs used to manage psychosis, including schizophrenia and bipolar disorder, by reducing or eliminating symptoms such as hallucinations and delusions.