Two Assets Have a Coefficient of Correlation of -

question 10

Multiple Choice

Two assets have a coefficient of correlation of -.4.

• A)Combining these assets will increase risk.
• B)Combining these assets will have no effect on risk.
• C)Combining these assets may either raise or lower risk.
• D)Combining these assets will reduce risk.

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Definitions:

Compliment Hypothesis

A proposition suggesting that positive feedback or flattery can enhance the effectiveness of a persuasive message.

Self-Esteem

A measure of how much you value and respect yourself.

Perceived Similarity

The extent to which individuals believe they share common attributes, beliefs, or interests with others.

Perceived Distinctiveness

The degree to which individuals see themselves as different from others in their social surroundings.