Which of the Following Statements Is NOT True of Correlational

question 19

Multiple Choice

Which of the following statements is NOT true of correlational research methods?

• A) Correlational research methods allow exploring questions that are not possible to examine with experimental procedures.
• B) Correlational studies broaden the scope of what psychologists can study.
• C) Correlational methods demonstrate that two variables are causally related when the results are good.
• D) Correlational research can have a third-variable problem.

---

Definitions:

Required Return

Required return is the minimum expected return by investors for investing in a stock, bond, or another security, considering its risk.

Expected Market Return

The average return anticipated from an investment in the broader market, serving as a benchmark for evaluating investment performance.

Beta

A measure of a stock's volatility in comparison to the market as a whole.

Risk Premium

The additional return required by an investor for tolerating a higher level of risk compared to a safe investment.