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

Understand the concept of correlation, including positive and negative correlations, and their implications.

Grasp the importance of representative samples in research and how they are constituted.

Understand the concept and function of control groups, random assignment, and placebo effects in experimental research.

Recognize the significance and mechanisms of the double-blind technique to mitigate bias in experiments.

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