A negative coefficient of correlation implies that
A) on average, returns to such assets are negative.
B) asset returns tend to move in opposite directions.
C) asset return tend to move in opposite directions.
D) None of the above because the coefficient of correlation cannot be negative.
Answer: B
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Indicate whether the statement is true or false.
Over any given month, Hammond Market loses 10% of its customers to Otro Plaza and 20% to Tres Place. Otro Plaza loses 5% to Hammond and 10% to Tres Place. Tres Place loses 5% of its customers to each of the two competitors
At the present time, Hammond Market has 40% of the market, while the others have 30% each. (a) Next month, what will the market shares be for the three firms? (b) In two months, what will the market shares be for the three firms?