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Describes relationship between returns of two companies

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Question 1: Two companies operate in the same industry and tend to follow practically identical patterns of performance. Which statement describes the relationship between the returns of the two companies?

Option 1: They show imperfect correlation.

Option 2: They are uncorrelated.

Option 3: They show perfect negative correlation.

Option 4: They show perfect positive correlation.

Reference no: EM132499678

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