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Let three stocks A, B, and C. The correlation coefficient between rates of return of A and of B equals 1, that is, A,B =
Let three stocks A, B, and C. The correlation coefficient between rates of return of A and of B equals 1, that is, A,B = 1. As a result
| a. | B,C < 0 | b. | cannot tell | c. | B,C > 0 | d. | B,C = A,C | e. | B,C = A,B |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
