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.

---

Definitions:

Immediate Benefit

The direct and prompt advantage gained from a particular action or decision.

Autoplastic Solutions

Coping strategies in which an individual attempts to change themselves to adapt to or deal with their environment or situations.

Alloplastic Solutions

Strategies that involve changing the environment to better suit an individual's needs or cope with stress.

Locus of Control

A psychological concept referring to the extent to which individuals believe they have control over the events in their lives, as opposed to external forces or chance.