When the Returns of Two Stocks Are Negatively Correlated,but Not

question 71

Multiple Choice

When the returns of two stocks are negatively correlated,but not perfectly negatively correlated,then:

• A)they always move oppositely.
• B)they tend to move oppositely.
• C)they have no tendency.
• D)they tend to move together.
• E)they always move together.

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Definitions:

Collections

The process of recovering amounts owed to a business by its customers.

Accounts Payable

Represents money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Cost of Goods Sold

The direct costs tied to the production of goods sold by a company, including both raw materials and labor costs.

Collections

The process of receiving payments from customers or the amounts collected on outstanding accounts receivable.