The Correlation Coefficients Between the Returns on a Broad Index

question 36

Multiple Choice

The correlation coefficients between the returns on a broad index of Canadian stocks and the returns on indices of the stocks of other industrialized countries are,in general,_________,while the correlation coefficients between the returns on various diversified portfolios of Canadian stocks are,in general,_________.

• A) less than 0,greater than 0
• B) greater than 0,less than 0
• C) less than 0.8,greater than 0.8
• D) greater than 0.8,less than 0.8
• E) less than 0,less than 0