House prices rise when interest rates fall. These two variables (house prices and interest rates) are: Positively skewed Not correlated Negatively correlated Positively correlated D Question 7 1 pts Correlation a measure of the relationship between two random variables, measures the degree to which a change in the riskiness of one security causes the risk of another to change. may only be positive. O is usually negative for a portfolio with two assets. .. Which type of average is a more accurate portrayal of investment return over time? The simple average None of the above The arithmetic average The geometric average Question 5 Which of the following statements is true? Risk-averse investors prefer investments with high standard deviations. An increase in risk will result in an increase in the standard deviation None of the above Standard deviations can be computed for stock returns, but not for bond yields