True of False: We would expect the performance of Ford and GM to be negatively correlated.

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True of False: We would expect the performance of Ford and GM to be negatively correlated.

True of False:

We would expect the performance of Ford and GM to be negatively correlated.

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Answer 1

Answer #1

The statement is false because the both Ford and GM is in same industries which make both are positively correlated while analyzing the the return of these two stocks over the time period we find the these stocks are positively correlated. Thus the given statement is false.

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Answer 2

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True of False: We would expect the performance of Ford and GM to be negatively correlated.

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