For Most Stocks,the Correlation Coefficient with Other Stocks Is ________

question 103

Multiple Choice

For most stocks,the correlation coefficient with other stocks is ________.

• A)positive
• B)negative
• C)zero
• D)The distribution of correlation coefficients between stocks is uniform from -1.0 to +1.0.

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Definitions:

Monthly Stream

A monthly stream often refers to consistent or recurring flows of income, payments, or data that occur every month.

Discount Rate

An interest rate used to discount future cash flows to their present value, often central in determining the value of investments.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual, group, or organization.

Annual Percentage Rate

A measure of the cost of credit, expressed as a yearly interest rate.