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If the return of two stocks has a correlation of 1 , what does this imply about the relative movements in the stock prices? (
If the return of two stocks has a correlation of what does this imply about the relative movements in the stock prices? Select the best choice below. A For each dollar increase in the price of one stock, the other stock also increases by a dollar. B The percentage change in the stocks prices are exactly opposite of each otherfor every positive change in the one stock, the other stock has a negative change. C If the price of one stock goes up the other stock price always goes up as well. D The returns of the two stocks are unrelated.
If the return of two stocks has a correlation of what does this imply about the relative movements in the stock prices?
Select the best choice below.
A For each dollar increase in the price of one stock, the other stock also increases by a dollar.
B The percentage change in the stocks prices are exactly opposite of each otherfor every positive change in the one stock, the other stock has a negative change.
C If the price of one stock goes up the other stock price always goes up as well.
D The returns of the two stocks are unrelated.
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