Use the Following Information to Answer the Question(s)below

question 25

Multiple Choice

Use the following information to answer the question(s) below. All amounts are in millions.
-The correlation between the expected return and the market capitalization of these stocks is:

• A)negative.
• B)positive.
• C)zero.
• D)Unable to determine with the information given

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Definitions:

Exponentially Smoothed

A data smoothing technique that gives recent observations more weight than older observations, often used in time series analysis.

Smoothing Constant

A parameter used in exponential smoothing methods that determines the level of smoothing applied to the data.

Seasonal Variation

Fluctuations in data or economic activity that occur regularly based on the season or time of year.

Time Series

It is a sequence of data points indexed in time order, often used to analyze and predict future events based on past trends.