A Correlation Coefficient of ________ Provides the Greatest Possible Risk

question 17

Multiple Choice

A correlation coefficient of ________ provides the greatest possible risk reduction to the firm.

• A) −2
• B) −1
• C) 0
• D) +1

---

Definitions:

Future Cash Flows

The estimated amounts of money expected to be received or paid out in the future as a result of business operations or investments.

Capital Investment Decisions

Pertains to the process of deciding on and committing to projects or investments that have long-term implications for a company's growth and profitability.

Long-term Commitment

A contractual agreement to perform certain activities or make payments over a period longer than one year.

Funds

Money that is available for spending or investment, often referred to within the context of managing or allocating financial resources.