If the Returns of Two Firms Are Negatively Correlated, Then

question 29

True/False

If the returns of two firms are negatively correlated, then one of them must have a negative beta.

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Definitions:

Loyalty

The quality of being faithful or devoted to a person, country, group, or cause.

Caution Signals

Indications or warnings that suggest a potential problem or risk in a situation, especially relevant in decision-making processes.

Buyer

An individual or entity that purchases goods or services for personal use or for the use of an organization.

Disagreement Signals

Indicators or cues, often nonverbal or verbal, that suggest a difference of opinion or conflict between individuals.