Two assets whose returns move in the opposite directions and have a correlation coefficient of -1 are either risk-free assets or low-risk assets.

Name: Two assets whose returns move in the opposite directions and have a correlation coefficient of -1 are either risk-free assets or low-risk assets.
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Question

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A correlation coefficient of -1 indicates perfect negative correlation, meaning the assets move in exactly opposite directions, but it does not imply that the assets are risk-free or low-risk.

Two Assets Whose Returns Move in the Opposite Directions and Have