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:

Solid Steel Stock

A form of steel material that is completely solid, used for a variety of industrial and construction applications.

Precision Balancing

A process of adjusting the mass distribution of a rotating component so that it operates without causing undue vibration.

Driveshaft Runout

The amount of wobble or deviation from true circular rotation in a driveshaft as it turns.

Dial Indicator

A precision measuring tool used to measure small distances or angles with high accuracy, often used in engineering and machining.