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What does the correlation between the returns of two risky assets measure? Why should investors care...

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Finance

What does the correlation between the returns of two riskyassets measure? Why should investors care about this measure?

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A perfect positive correlation means that the correlation coefficient is exactly 1 This implies that as one security moves either up or down the other security moves in lockstep in the same direction A perfect negative correlation means that two assets move in opposite directions while a    See Answer
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What does the correlation between the returns of two riskyassets measure? Why should investors care about this measure?

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