If the Correlation Between Two Stocks Is -1, the Returns

question 1

Multiple Choice

If the correlation between two stocks is -1, the returns:

• A)generally move in the same direction.
• B)move perfectly opposite one another.
• C)are unrelated to one another as it is < 0.
• D)have standard deviations of equal size but opposite signs.
• E)None of the above.

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Definitions:

Developed

Refers to something that has been advanced or progressed, often used in the context of countries, technologies, or ideas that have reached an advanced stage.

Sleeplessness-produced Problem

Issues or complications that arise as a direct result of insufficient sleep, such as cognitive impairments or mood disorders.

Concentrating

Concentrating involves focusing one's attention or mental effort on a specific task, object, or activity, often leading to better performance or understanding.

Forgetfulness

A common occurrence of temporary memory lapses or the inability to remember information or experiences, often due to factors like stress, aging, or lack of sleep.