A Correlation Coefficient of +1 Indicates That Returns on One

question 31

True/False

A correlation coefficient of +1 indicates that returns on one asset can be exactly predicted from the returns on another asset.

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Definitions:

Collectivism

A cultural value that prioritizes group goals over individual goals and emphasizes the importance of cohesion within social groups.

Uncertainty Avoidance

A cultural or individual preference for clear procedures and rules as a way to reduce the unpredictability of future events.

Hierarchy Orientation

A focus on the structure of ranking within an organization, emphasizing the roles, responsibilities, and power distribution among its members.

Societal Culture

Pertains to the shared values, norms, customs, and practices among people within a society or country.