Multiple Choice
Which of the following statements is correct?
A) For a few firms in completely different industries, it is possible to have a correlation that approaches −2.0.
B) A correlation of −1.0 means that the two firms are uncorrelated or that they have no relationship.
C) Most common stocks have low correlation with each other since they operate in different industries.
D) None of the statements are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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