Correlational Studies Are Used to Demonstrate Cause-And-Effect Relationships

question 555

True/False

Correlational studies are used to demonstrate cause-and-effect relationships.

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Definitions:

Actively Managed Bond Funds

Bond investment funds where fund managers actively make decisions on buying and selling bonds to outperform the market or reach specific investment goals.

Efficient Market Hypothesis

A theory stating that financial markets are “informationally efficient,” meaning prices fully reflect all available information.

Abnormal Returns

Abnormal returns refer to the profits generated from a security or portfolio that differ significantly from the expected market returns, based on risk and market performance.

Positive Abnormal Returns

Returns on an asset or portfolio that exceed the benchmark or expected return given its risk level.