It Is Possible for a Firm to Have a Positive

question 72

True/False

It is possible for a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative.

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Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account, ensuring the availability of funds.

Drawer

The party that writes or creates a bill of exchange, such as a check, directing a drawee to pay a specified sum to a payee.

Drawee

The party, typically a bank, upon whom a check or draft is drawn and is expected to pay the stated amount.

Drawer

The party that writes and signs a negotiable instrument, such as a check, instructing a drawee (often a bank) to pay a specified sum to a payee.