In the Real World, Most of the Assets Available to Investors

question 72

Multiple Choice

In the real world, most of the assets available to investors

• A) tend to be somewhat positively correlated.
• B) tend to be somewhat negatively correlated.
• C) tend to be uncorrelated.
• D) tend to be either perfectly positively or perfectly negatively correlated.

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Definitions:

Market Price

The market price at which you can currently buy or sell an asset or service.

Cash Deal

A transaction where the payment for a good, service, or acquisition is made entirely with cash instead of financing or stock exchanges.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of an asset in the open market.

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash within a year.