If Stock a and Stock B Both Decrease in Value

question 100

Multiple Choice

If Stock A and Stock B both decrease in value at the same time, they are

• A)negatively correlated.
• B)uncorrelated.
• C)positively correlated.
• D)bad bets.

---

Definitions:

Manufacturing Business

A type of business that produces finished goods from raw materials through a combination of manpower, machines, and chemical processes.

Statement of Stockholders' Equity

A financial document that shows changes in the equity section of the balance sheet over a period, including net income, dividend payments, and issuance or repurchase of stock.

Stockholder's Equity

The interest in a corporation's assets that exists after debts are paid off, reflecting a stake in ownership.

Retail Business

A business model that involves selling goods directly to consumers, typically in small quantities.