Question 1
When two companies' profits tend to move in opposite directions in response to changing economic factors, the companies are likely
◦ negatively correlated.
◦ not correlated.
◦ unrelated in industry sector.
◦ in different regions of the world.
Question 2
Which of the following do
not belong in a well diversified portfolio?
◦ Global equities
◦ Bonds
◦ Precious metals like gold or silver
◦ All of these can be present in a well diversified portfolio.
