Question: If the correlation between two stocks is -1, the returns: Multiple Choice generally move in the same direction. move perfectly opposite one another. are unrelated

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

Multiple Choice

  • generally move in the same direction.

  • move perfectly opposite one another.

  • are unrelated to one another as it is <0.

  • have standard deviations of equal size but opposite signs.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!