Ii perfectly positively correlated describes two

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Unformatted text preview: e following statements about correlation is/are correct? I. Perfectly negatively correlated describes two negatively correlated stocks that have a correlation coefficient of  ­1. II. Perfectly positively correlated describes two positively correlated stocks that have a correlation coefficient of 0. a. I only b. II only c. Both I and II d. Neither I nor II 1 2 ANS: A The second statement is wrong because it shall be that: Perfectly positively correlated describes two positively correlated stocks that have a correlation coefficient of 1. 4. The range of values that correlation coefficient...
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This note was uploaded on 07/31/2013 for the course FIN 504 taught by Professor Harper,j during the Summer '08 term at Texas A&M University–Commerce.

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