The Correlation of Returns of the U

question 3

Multiple Choice

The correlation of returns of the U.S.equity market index with the indexes of equity markets in seventeen other countries over the period 1977-1996 is between

• A)-1 and -0.50.
• B)1 and 0.50.
• C)-0.50 and 0.0.
• D)0.0 and 0.50.

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Definitions:

Acronym

A word formed from the initial letters of a phrase, making it easier to remember or say.

Shockwave

A sharp change in pressure, temperature, and density moving through a medium, typically caused by an object moving faster than the speed of sound in that medium.

High Explosives

Substances that detonate, decomposing extremely rapidly and producing a shock wave with high energy output.

Initiate

To begin or start a process or action.