Correlational Research Meets Only One of Three Necessary Criteria for Determining

question 122

Multiple Choice

Correlational research meets only one of three necessary criteria for determining whether one variable causes another. That criterion is

• A) covariation.
• B) time precedence of the cause.
• C) absence of alternative explanations.
• D) creation of operational definitions.

---

Definitions:

Protective Put

An investment strategy that involves buying put options on stocks that are already owned to hedge against potential declines in the value of those stocks.

Downside Risk

Refers to the potential loss in value of an investment or asset if the market conditions deteriorate.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Sell Shares

The act of offloading equity stakes in a company, usually in the form of stock, to raise capital or realize gains from investment.