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If the Returns of Two Firms Are Negatively Correlated, Then

question 141

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If the returns of two firms are negatively correlated, then one of them must have a negative beta.


Definitions:

High Percentage

Refers to a substantial or large proportion of a mix, group, or total.

Sand

is a granular material composed of finely divided rock and mineral particles, often used in construction.

Forces and Energy

Fundamental concepts in physics, with forces being interactions that change the motion of objects and energy being the capacity to do work.

Gravitational Pull

The force by which a planet or other body draws objects toward its center.

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