71. The value of probability is always between __________ (inclusive).
(A) –1 and 0
(B) 0 and 1
(C) –1 and 1
(D) none of these

72. The value of correlation is always between __________ (inclusive).
(A) –1 and 0
(B) 0 and 1
(C) –1 and 1
(D) none of these

73. If two firms in the same line of business merge together, it is called __________ merger.
(A) horizontal
(B) vertical
(C) straight
(D) conglomerate

74. If two firms at different stages of production merge together, it is called __________ merger.
(A) horizontal
(B) vertical
(C) straight
(D) conglomerate

75. If two firms in unrelated line of business merge together, it is called __________ merger.
(A) horizontal
(B) vertical
(C) straight
(D) conglomerate

76. The measure for calculating how much two random variable change together is called
(A) variance
(B) covariance
(C) skewness
(D) kurtosis

77. The normalized version of covariance is called
(A) regression
(B) correlation
(C) cross-section
(D) spread

78. Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?
(A) –1
(B) 0
(C) 1
(D) risk cannot be eliminated

79. In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called
(A) angel investors
(B) corporate investors
(C) venture capitalists
(D) venture capital firms

(A) spinning
(B) underwriters
(C) venture capitalists
(D) venture capital firms