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:

Leading Versus Doing

The distinction between guiding, directing, and motivating others to achieve a goal (leading) versus personally executing tasks and activities (doing).

Expectancy Theory

A psychological theory stating that an individual's motivation to engage in an activity is influenced by the expected outcome and the value of that outcome to the individual.

Expectancy

In psychology, a theory that explains the motivation behind choices, suggesting that people are motivated to act in a certain way because they expect their actions will lead to their desired goal.

Instrumentality

In expectancy theory, the belief that a certain level of performance will lead to a specific outcome or reward.