Two Assets Whose Returns Move in the Same Direction and Have

question 33

True/False

Two assets whose returns move in the same direction and have a correlation coefficient of +1 are each very risky assets.

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Definitions:

Biased Opinion

A preference or inclination that precludes an impartial judgment, often resulting from preconceived notions or prejudices.

Nonsampling Error

Errors not related to the act of selecting a sample from the population, such as measurement and processing errors.

Incorrect Responses

Answers or replies that do not accurately address the question or problem posed.

Target Population

The total group of individuals or items to which researchers intend to generalize the results of their study.