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How Will the Returns on Two Assets React If Those

Question 60

Multiple Choice

How will the returns on two assets react if those returns have a perfect positive correlation?
I. move in the same direction
II. move in opposite directions
III. move by the same amount
IV. move by either equal or unequal amounts


A) I and III only
B) I and IV only
C) II and III only
D) II and IV only
E) III only

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