As Long as the Coefficient of Correlation Between Two Stocks

question 24

True/False

As long as the coefficient of correlation between two stocks is less than +1,some reduction in risk can be obtained by combining the securities.

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Regular payments of the same amount made over a period of time.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Interest

The fee or rent that lenders charge for the use of their money.

Third Payment

The third installment of a payment series as agreed upon in a financial transaction or repayment plan.