Which One of the Following Correlation Relationships Has the Potential

question 35

Multiple Choice

Which one of the following correlation relationships has the potential to completely eliminate risk?

• A)perfectly positive
• B)positive
• C)negative
• D)perfectly negative
• E)uncorrelated

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Definitions:

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Marginal Profit

The rise in earnings achieved by selling an extra unit of a product or service.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Competitive

A state of being in which entities vie against each other to achieve a goal, such as market dominance or winning a contest.