About the relative movements in the stock prices

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Reference no: EM13836211

If the return of two stocks has a correlation of 1, what does this imply about the relative movements in the stock prices?

A) if the price of one stock goes up, the other stock price aalways goes up as well

B) the percentage change in the stocks prices are exactly oposite of eachother- for ever + in one stock, the other stock is -

C) for each $ increase in the price of one stock, other stock increase by $

D) the return of the two stocks are unrelated

Reference no: EM13836211

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