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For the Most Part, Stock Returns Tend to Move Together

question 67

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For the most part, stock returns tend to move together. Thus, pairs of stocks tend to have both positive covariances and correlations.

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Definitions:

Debilitating

Debilitating describes a condition or illness that severely affects one's strength or ability to carry out day-to-day activities.

Hospitalization

The process or period of receiving medical treatment in a hospital.

Dissociative Disorder

A psychological condition characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Carelessness

A lack of attention or consideration resulting in mistakes or accidents.

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