If two assets have a correlation of 1, their returns will: O a. always move in the same direction but not necessarily by the same amount. move randomly and independently of each other. O b. always move in opposite directions by the same amount. always move in opposite directions but not necessarily by the same amount. always move in the same direction by the same amount. O c. O d. Oe.
If two assets have a correlation of 1, their returns will: O a. always move in the same direction but not necessarily by the same amount. move randomly and independently of each other. O b. always move in opposite directions by the same amount. always move in opposite directions but not necessarily by the same amount. always move in the same direction by the same amount. O c. O d. Oe.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Exercise 9.pdf
If two assets have a correlation of 1, their returns will:
O a.
O b.
O c.
O d.
Oe.
always move in the same direction but not necessarily by the same amount.
move randomly and independently of each other.
always move in opposite directions by the same amount.
always move in opposite directions but not necessarily by the same amount.
always move in the same direction by the same amount.
D IMG_5695 (3).MOV
A
IMG_5695 (2).MOV
TS
IMG_5695 (1).mov
ditv](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31b2f445-3021-4de6-8f77-439b2b52ecc7%2Fb7805de0-7cef-46f7-8168-6f6313ebaae6%2F0ixfowp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 11
Not yet
answered
Flag
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602
Exercise 9.pdf
If two assets have a correlation of 1, their returns will:
O a.
O b.
O c.
O d.
Oe.
always move in the same direction but not necessarily by the same amount.
move randomly and independently of each other.
always move in opposite directions by the same amount.
always move in opposite directions but not necessarily by the same amount.
always move in the same direction by the same amount.
D IMG_5695 (3).MOV
A
IMG_5695 (2).MOV
TS
IMG_5695 (1).mov
ditv
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