Which of the Following Is Reported as a Negative Correlation

question 14

Multiple Choice

Which of the following is reported as a negative correlation?

• A)intelligence and academic achievement
• B)stress and health
• C)studying and academic achievement
• D)studying and GPA

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Definitions:

Capital Market Line

A line used in the Capital Asset Pricing Model to illustrate the rates of return for efficient portfolios depending on the level of risk free rate and the level of market risk.

Market Portfolio

A theoretical portfolio that includes all assets in the market, with each asset weighted according to its market capitalization.

Risk Aversion

This concept describes an investor's preference to minimize uncertainty or to avoid risk in their investment decisions.

Risk-Free Rate

An anticipated gain from an investment devoid of financial risk, frequently illustrated through the returns on state bonds.