How Will the Returns on Two Assets React If Those

question 60

Multiple Choice

How will the returns on two assets react if those returns have a perfect positive correlation?
I. move in the same direction
II. move in opposite directions
III. move by the same amount
IV. move by either equal or unequal amounts

• A)I and III only
• B)I and IV only
• C)II and III only
• D)II and IV only
• E)III only

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Definitions:

Competitive Task

An activity or assignment in which participants compete against each other to achieve a goal or superior performance.

Group Goal

A target or objective sought by a collective group, which guides its actions and efforts.

Heterogeneous Goals

refer to objectives or aims that vary greatly among individuals or groups, often leading to diverse motivations and outcomes.

Hidden Agendas

Secret or unspoken motives or intentions behind certain actions or decisions, often diverging from the stated objectives.