Studies of Correlations Among Monthly Equity Price Index Returns Have

question 27

Multiple Choice

Studies of correlations among monthly equity price index returns have found:

• A) Low correlations between various U.S. equity indexes
• B) High correlations between various U.S. equity indexes
• C) High correlations between U.S. and non-U.S. equity indexes
• D) Negative correlations between various U.S. equity indexes
• E) None of the above

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Definitions:

Emissions

The act of releasing substances, especially pollutants, into the atmosphere or environment.

Government

An organized system that establishes and enforces rules and institutions to govern a community, region, or country.

Firms

Business entities that produce goods or provide services to consumers, aiming to maximize profits.

Pigouvian Taxes

Taxes imposed on any market activity that generates negative externalities (costs not reflected in the market price) to correct the market outcome.