While the Covariance Between Stocks Can Take on a Negative

question 28

True/False

While the covariance between stocks can take on a negative value,a correlation coefficient must be positive,or at a minimum,zero.

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Definitions:

Satisfaction

A state of contentment or fulfillment that comes from meeting one’s needs, desires, or expectations.

Facet Satisfaction

The degree of contentment an employee feels towards individual aspects of their job, such as their duties, work environment, or compensation.

Discrepancy

A difference or inconsistency between two or more facts, figures, or points of view.

Inequity

The perception or reality of unfair treatment or disparity in resources, rewards, or opportunities among individuals or groups, leading to dissatisfaction and demotivation.