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When stock As price goes up, which of the following statements are true about the definition of correlation? I. If stock Bs correlation with A
When stock As price goes up, which of the following statements are true about the definition of correlation?
I. If stock Bs correlation with A is 0.8, then it is very likelythat stock Bs price will also go up.
II. If stock Bs correlation with A is 0, then stock Bs price willdefinitely go down.
III. If stock Bs correlation with A is 0, then stock Bs pricemay (or may not) go up.
IV. If stock Bs correlation with A is -1, then stock Bs price will always go down.
A.I and III
B.I, II, and IV
C.I and IV
D.I, III, and IV
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