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:

Deviant

An individual or behavior that deviates from the accepted norms of society.

Norm

A norm is a standard or rule that guides behavior within a group, often reflecting the group's expectations for how its members should act under given circumstances.

Negative Reaction

An adverse response or dislike towards something or someone, often resulting from personal opinions or experiences.

Symbolically Appropriate

Pertains to actions or symbols that are deemed suitable or fitting within a given context or society.