A Negative Correlation Means That as One Variable Increases the Other

question 240

Multiple Choice

A negative correlation means that as one variable increases the other

• A)increases.
• B)decreases.
• C)remains constant.
• D)increases then decreases.

Understand the concept of market risk, including how beta measures the sensitivity of a stock's returns to market movements.

Comprehend the benefits of diversification in reducing investment risk.

Differentiate between diversifiable and non-diversifiable (systematic) risk.

Calculate and interpret standard deviation as a measure of risk in investment returns.

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Definitions:

Company's Benefits

The range of perks and supports offered by an employer to its employees, which may include health insurance, retirement plans, and paid time off.

Retirement Plans

Financial strategies or programs that allow individuals to save for their retirement, often with contributions from employers.

Union Demands

Requests or requirements issued by a labor union on behalf of its members, often relating to wages, working conditions, and benefits during negotiations.

Pension Benefits Standards Act

A federal act regulating pension plans in industries under the jurisdiction of the Government of Canada.