In an Efficient Market the Correlation Coefficient Between Stock Returns

question 23

Multiple Choice

In an efficient market the correlation coefficient between stock returns for two nonoverlapping time periods should be

• A) positive and large.
• B) positive and small.
• C) zero.
• D) negative and small.
• E) negative and large.

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Definitions:

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An online environment where products, services, and information are exchanged.

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