What Is the Possible Range for a Correlation Coefficient? for Purposes

question 63

Essay

What is the possible range for a correlation coefficient? For purposes of diversification,what type of correlation coefficient among asset returns is preferred by investors? Explain why.

---

Definitions:

Brand Scorecard

A strategic management tool used to monitor, measure, and manage a brand's performance against predetermined goals or benchmarks.

Brand Coolness

The perception of a brand being trendy, favorable, and appealing to its target demographic, often associated with cultural relevance.

Brand Relevance

Describes the degree to which a brand or product meets the needs and desires of its targeted consumers, influencing their purchase decisions.

Signalling Value

The information that a product, service, or action conveys to others, often used in marketing to indicate quality, status, or other desirable attributes.