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:

Buyer-Seller Relationships

The interactions and associations between individuals or businesses engaging in the exchange of goods and services.

Conglomerate Merger

A type of corporate action where firms in unrelated business activities or industries merge or acquire each other.

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often aimed at reducing competition or achieving economies of scale.

Interlocking Directorate

A situation where one or more members of the board of directors of a corporation are also on the board of directors of a competing corporation; illegal under the Clayton Act.