When the returns of two stocks are perfectly positively correlated,then:
A)they always move oppositely.
B)they tend to move oppositely.
C)they have no tendency.
D)they tend to move together.
E)they always move together.

Question

Quizplus · Accepted Answer

When two stocks are perfectly positively correlated, their returns move together in the same direction consistently.

When the Returns of Two Stocks Are Perfectly Positively Correlated,then