It Is Possible for a Firm to Have a Positive

question 72

True/False

It is possible for a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative.

---

Definitions:

Phobias

Intense, irrational fears of specific objects, activities, or situations that lead to avoidance behavior.

Neurosis

A mental health condition characterized by chronic distress but without significant impairments in reality testing or functioning, often involving anxiety, depression, or obsessive behaviors.

Manic Depression

An alternative term for bipolar disorder, characterized by dramatic shifts in mood, energy, and activity levels, including periods of mania and depression.

Anxiety Reaction

A psychological and physical response to perceived threats or stress, characterized by feelings of worry, nervousness, or unease.