Two Assets with a Correlation Coefficient of -1

question 53

Multiple Choice

Two assets with a correlation coefficient of -1

• A) Will both have increasing returns at the same time
• B) Will both have decreasing returns at the same time
• C) Will have increasing returns for one when there are decreasing returns for the other
• D) Will have decreasing returns in an economic boom
• E) Will have increasing returns in an economic recession

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