Question
Annual trading data on stock returns shows that two largely traded stocks, WALFLOR (WLF) and COSTORG (CTRG), have a correlation coefficient of -0.75. If the
Annual trading data on stock returns shows that two largely traded stocks, WALFLOR (WLF) and COSTORG (CTRG), have a correlation coefficient of -0.75. If the know that the return of WLF was -20% in 2022, this probably means that in the same year the annual return on CTRG was ______ . In addition, one effective trade recommendation would have been to be ________ WLF and _______ CTRG.
| a. | -15%, Short; Long | |
| b. | +20%; Short; Long | |
| c. | -15%; Long; Short | |
| d. | +15%; Short; Long |
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Analysis Of Financial Data
Authors: Gary Koop
1st Edition
0470013214, 978-0470013212
