The Concept of Stock Correlation Shows

question 11

Multiple Choice

The concept of stock correlation shows:

• A) The extent to which the variance of two stocks are similar.
• B) The average returns of two stocks.
• C) The average risk of two stocks.
• D) How risky two assets are.
• E) The extent to which the returns on two assets move together.

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Definitions:

Naysayers

Individuals who are often negative or skeptical about ideas and refuse to believe that something might be successful or positive.

Yea-Sayers

Individuals who habitually agree with or support a particular idea, person, or group.

Hits

In the context of memory and recognition, correct identifications of previously seen or experienced stimuli.

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the phenomenon of sight.