AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 12 Topic 2 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 12 Topic 2 Discussion

GLO_CWM_LVL_1 Exam Topic 2 Question 12 Discussion:
Question #: 12
Topic #: 2

The returns on Stock A and Stock B have a correlation coefficient of –1. When the price of Stock A appreciates by 12%, how will Stock B’s price perform?


A.

Appreciate by 12%.


B.

Depreciate by 12%.


C.

Stay unchanged.


D.

Depreciate by 6.0%.


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