Question: For each statement, select the correct response Choose... . Choose... less than 1 correlation +1 The first step of calculating the correlation coefficient between the

For each statement, select the correct response Choose... . Choose... less than 1 correlation +1 The first step of calculating the correlation coefficient between the returns on two investments is to calculate the The risk of a portfolio depends on the risk and return for each asset in the portfolio and the correlation between the assets A perfect negative correlation coefficient has a value of When the returns for two assets both tend to rise at the same time or drop at the same time, the assets are said to be A perfect positive correlation coefficient has a value of Diversification can be used to reduce the risk of owning a portfolio whenever the correlation coefficients between each investment in the portfolio are: A statistic that measures the extent in which changes to the value one variable relates to changes in the value of another variable more than 1 correlation coefficient positively correlated - 1 covariance negatively correlated

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