The correlation between two stocks:
A) can take on positive values.
B) can take on negative values.
C) cannot be greater than 1.
D) cannot be less than -1.
E) All of

Question

Quizplus · Accepted Answer

The correlation between two stocks can be positive or negative, so A and B are correct. The correlation can range from -1 to 1, so both C and D are incorrect. Therefore, the correct answer is E: All of the above.

The Correlation Between Two Stocks