When the covariance of two assets is negative,then the two variables move in opposite directions: when one rises the other falls.

Name: When the covariance of two assets is negative,then the two variables move in opposite directions: when one rises the other falls.
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This statement is correct. When the covariance of two assets is negative, it means that as one asset moves up, the other asset tends to move down, and vice versa. This negative relationship is known as negative correlation.

When the Covariance of Two Assets Is Negative,then the Two