Correlation

question 25

Multiple Choice

Correlation

• A) is a measure similar to the standard deviation, but more precise.
• B) may only be positive.
• C) is usually negative for a portfolio with two securities.
• D) measures the degree to which a change in the riskiness of one security causes the risk of another to change.
• E) ranges between −1 and +1.

---

Definitions:

Sleep/Wake Cycle

The circadian rhythm that regulates patterns of sleepiness and wakefulness over a 24-hour period.

Sleep Spindles

Bursts of brain activity observable in an EEG that occur during Stage 2 of sleep, thought to play a role in memory consolidation and learning.

EEG Activity

The recording of electrical activity along the scalp produced by the firing of neurons within the brain, often used in neurological diagnosis.

Slowest Brain Waves

Delta waves, which are associated with the deepest stages of sleep and unconsciousness.