Assume the Returns on Stock X Were Positive in January

question 90

Multiple Choice

Assume the returns on Stock X were positive in January, February, April, July, and November. During the other months, the returns on Stock X were negative. The returns on Stock Y were positive in January, April, May, July, August, and October, and negative the remaining months. Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?

• A)−1.0
• B)−.5
• C)0
• D).5
• E)1.0

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Definitions:

Parkfield Segment

A section of the San Andreas Fault in California known for its high seismic activity and regular minor earthquakes.

Predicted Dates

Estimated dates or time periods for future events based on current knowledge or analysis.

Historical Earthquakes

Historical earthquakes are seismic events that have occurred in the past, whose impacts and characteristics have been recorded and studied through history and geology.

Seismic Gaps

Regions along active faults where no recent earthquakes have occurred, but where strong earthquakes are thought to be likely to occur in the future.