CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Given the historical returns for the two stocks listed below, what can be said about the correlation coefficient?

A. It must be +1.0.
B. It must be -1.0.
C. It is zero.
Explanation: The returns of the two stocks move in opposite directions in an exact one-for-one trade-off.

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