Which of the Following Statements Is Correct

question 85

Multiple Choice

Which of the following statements is correct?

• A)For a few firms in completely different industries, it is possible to have a correlation that approaches -2.0.
• B)A correlation of -1.0 means that the two firms is uncorrelated or that they have no relationship.
• C)Most common stocks have low correlation with each other since they operate in different industries.
• D)None of these statements are correct.

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Definitions:

Merchants Bancorp

An American banking company involved in providing banking and financial services.

Holder In Due Course

A person who acquires a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims.

Assignee

The party to whom rights or property are transferred in an agreement.

Transferor

An individual or entity that transfers its rights or properties to another.