Question 18
Suppose that stock A and stock B have a correlation of 1. This means that ______.
the returns of the two stocks tend to move closely with each other to the extent the two stocks behave like the same stock
the returns of the two stocks tend to move together but each return can also have some movements that are independent of the other return
the returns on the two stocks tend to vary independently of each other
the returns of the two stocks tend to move inversely
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
