If Two Assets Have a Zero Correlation, Their Returns Will

question 2

Multiple Choice

If two assets have a zero correlation, their returns will:

• A)always move in the same direction by the same amount.
• B)always move in the same direction but not necessarily by the same amount.
• C)move randomly and independently of each other.
• D)always move in opposite directions but not necessarily by the same amount.
• E)always move in opposite directions by the same amount.

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Definitions:

Reaction To Catastrophe

Reaction To Catastrophe refers to the wide range of emotional, cognitive, and behavioral responses that individuals and communities exhibit in response to a catastrophic event or disaster.

Recovery Stage

A phase in the healing process of an illness, injury, or psychological condition where symptoms are subsiding and functionality starts to restore.

Recovery Stage

A phase in the healing or rehabilitation process where improvement and return to a normal state or condition occur.

Posttraumatic Stress Disorder

A psychological disorder that arises from exposure to or being a witness to a horrifying incident, marked by recurring flashbacks, distressing dreams, and intense fear.