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Figure 27-1 What is the structure labeled as A in the accompanying figure?
Uncorrelated
Refers to two or more variables that do not have any predictive relationship with each other.
Negatively Correlated
A relationship between two variables in which one variable increases as the other decreases.
Positively Correlated
A term describing two variables that move in the same direction, such that when one variable increases, the other also increases.
Securities' Returns
The profit or loss generated on a security over a particular period, usually expressed as a percentage.
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