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Question

Finance

Company Beta
coefficient
A 1
B 2
C 0.5
D 0
E -0.5
F -1
G -2

The table shows the beta coefficients of shares for a few listed companies.

With respect to the market return:

a)Returns of company B are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

b)Returns of company D are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

c)Returns of company E are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

d)Returns of company G are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

e)Select all companies whose returns will always move in the opposite direction to the market:

Company A Company B Company C Company D Company E Company F Company G None of the above

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