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    If the Correlation Between Two Stocks Is -1, the Returns
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If the Correlation Between Two Stocks Is -1, the Returns

Question 1

Question 1

Multiple Choice

If the correlation between two stocks is -1, the returns:


A) generally move in the same direction.
B) move perfectly opposite one another.
C) are unrelated to one another as it is < 0.
D) have standard deviations of equal size but opposite signs.
E) None of the above.

Correct Answer:

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