If Investors Have Two Identical Assets That Have Different Rates

question 340

True/False

If investors have two identical assets that have different rates of return, the investors will sell the
asset with the higher rate of return to buy the asset with the lower rate of return.

---

Definitions:

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases.

Variable Increases

A situation in which the value of a variable becomes larger.

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations, used in statistical analysis.