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

question 5

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.
• E) None of these.

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Definitions:

Intermittently

Occurring at irregular intervals; not continuous or steady, often with pauses or breaks in between.

Variable Ratio

A reinforcement schedule where a response is rewarded after an unpredictable number of responses, making it a powerful method for conditioning stable and high rates of responding.

Reinforcement

In operant conditioning, a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Responses

Reactions or behaviors produced by an organism in response to a specific stimulus or situation.