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If the Correlation of Prices Between Two Stocks Is 0

Question 41

Multiple Choice

If the correlation of prices between two stocks is 0.35,then the price of one stock would be expected to:


A) rise when the other stock price falls.
B) rise by 35% when the other stock price is unchanged.
C) fall when the other stock price falls.
D) fall by 35% when the other stock price is unchanged.

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