Research Indicates That the Correlation Coefficient Between Successive Days' Stock

question 72

Multiple Choice

Research indicates that the correlation coefficient between successive days' stock price changes is:

• A) quite close to +1.
• B) quite close to -1.
• C) quite close to zero.
• D)directly related to the stock's beta.

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Definitions:

Assets

Economic resources owned or controlled by a business or individual, expected to produce value or benefit in the future.

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and other investments.

Long-term Borrowing

Debt obligations or loans that are due to be repaid over a period longer than one year, often used for large capital investments.

Stock Issuances

The process by which a company distributes its shares to investors, either through public offerings or private placements.