Between 1980 and 1990, the Standard Deviation of the Returns

question 30

Multiple Choice

Between 1980 and 1990, the standard deviation of the returns for the NIKKEI and the DJIA indexes were 0.19 and 0.06, respectively, and the covariance of these index returns was 0.0014. What was the correlation coefficient between the two market indicators?

• A) 8.1428
• B) 0.0233
• C) 0.0073
• D) 0.2514
• E) 0.1228

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Definitions:

Interest

The cost of using money over a period, expressed as a percentage rate.

Study

An organized investigation or analysis aimed at discovering new knowledge or understanding existing knowledge in a systematic way.

Observational Studies

Research methods in which subjects are observed in their natural setting without any manipulation by the researcher.

Researchers

Individuals or professionals who conduct detailed study and systematic investigation into something with the aim of discovering or revising facts, theories, applications, etc.