Question: What is correlation, and why is it important with respect to asset returns? Describe the characteristics of returns that are (a) Positively correlated, (b) Negatively

What is correlation, and why is it important with respect to asset returns? Describe the characteristics of returns that are
(a) Positively correlated,
(b) Negatively correlated,
(c) Uncorrelated.
Differentiate between perfect positive correlation and perfect negative correlation.

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