If the Returns of Two Stocks Are Negatively Correlated, Then

question 5

True/False

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

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Definitions:

Liability Insurance

Insurance coverage that protects an individual or entity from the risk of being liable for causing harm or damage to others.

Co-Insurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the loss in return for a lower premium.

Insurance Claimed

Insurance claimed involves a request for payment based on the terms of an insurance policy, following a loss, damage, or occurrence covered by the policy.

Actual Value

The true or genuine value of an asset or property, based on factual evidence and market conditions.