Which Two Indices Had the Lowest Correlation Between Them During

question 47

Multiple Choice

Which two indices had the lowest correlation between them during the 2008-2012 period?

• A) S&P and DJIA; the correlation was 0.979
• B) S&P and NASDAQ 100; the correlation was 0.928
• C) DJIA and Russell 2000; the correlation was 0.908
• D) S&P and Russell 2000; the correlation was 0.948
• E) NASDAQ 100 and DJIA; the correlation was 0.876

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Definitions:

Lack-of-participation Error

A common mistake in decision-making processes, where not all relevant parties are involved, leading to suboptimal outcomes.

Escalating Commitment

A behavioral phenomenon where an individual or group continues to invest in a decision despite evidence of its ineffectiveness.

Confirmation Error

A cognitive bias that involves focusing on information that confirms one's preconceptions and ignoring information that contradicts them.

Framing Error

A mistake made when individuals misinterpret the context or perspective of a decision or problem, often influenced by the way information is presented.