If the Correlation Between Two Stocks Is -1, the Returns

question 35

Multiple Choice

If the correlation between two stocks is -1, the returns:

• A) generally move in the same direction.
• B) move perfectly opposite one another.
• C) are unrelated to one another as it is <0.
• D) have standard deviations of equal size but opposite signs.

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Definitions:

Strong Presence

Having a noticeable, influential, or dominant position within a particular space, often referring to brands or individuals in the digital or physical world.

Communities

Groups of people who share interests, values, goals, or geographical locations and interact with each other.

Similar Interests

Common preferences or hobbies shared among a group of people, which often serve as a basis for social interactions and connections.

Social Media Presence

The activity, engagement, and visibility a person or organization maintains across social media platforms to reach and interact with audiences.