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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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In the context of financial risk management, it is essential to assess the relationship between the returns of two financial assets to determine if they exhibit any form of dependency. By doing this, a risk analyst aims to evaluate if movements in the return of one asset can be associated with movements in the return of another asset. Given this scenario, which of the following statements accurately describes the concepts of correlation and dependence?

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