The Relatively Low Correlation Between the Movement of Stock Markets

question 38

Multiple Choice

The relatively low correlation between the movement of stock markets in different countries indicates that:

• A) diversifying a portfolio will increase the risk of investing.
• B) most countries face similar economic conditions.
• C) countries pursue different macroeconomic policies.
• D) different stock markets are not segmented from each other.

---

Definitions:

White Rat

Often used in laboratory experiments, these are albino rats specifically bred for research purposes.

Rosalie Rayner

An American psychologist known for her work with John B. Watson on the Little Albert experiment, demonstrating classical conditioning in humans.

Freudian Analysis

A psychotherapeutic approach developed by Sigmund Freud focusing on uncovering unconscious thoughts and motivations to treat psychopathologies.

Little Albert

An experimental subject in John B. Watson's study, demonstrating how emotions could be conditioned in humans.