Statistical Correlation Studies of Returns of the Three Key Financial

question 31

Multiple Choice

Statistical correlation studies of returns of the three key financial assets indicates that

• A)there is strong positive correlation among their returns.
• B)it makes sense to hold Treasury bonds and Treasury bills together,but not stocks.
• C)holding a portfolio of all three assets increased return and decreased risk.
• D)there is rather poor correlation among their returns.

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Definitions:

Economic Benefits

The potential profitable returns or advantages that can be obtained from an economic activity or resource.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.

On-call Advice

A service providing immediate assistance or information, often in financial or technical areas, as needed.

Upfront Advice

Preliminary guidance or recommendations provided before entering into a transaction or making a decision, often involving financial or legal matters.