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    Principles of Corporate Finance Study Set 5
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    The Correlation Measures The
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The Correlation Measures The

Question 17

Question 17

Multiple Choice

The correlation measures the:


A) Rate of movements of the return of individual stocks
B) Direction of movement of the return of individual stocks
C) Direction of movement between the returns of two stocks
D) Stock market volatility

Correct Answer:

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