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:

Nerve

A bundle of fibers that transmits electrical impulses between the brain and the rest of the body, facilitating communication.

Spleen

An organ in the left upper abdomen that acts in blood filtration, red blood cell recycling, and immune system support.

Reticular Tissue

A type of connective tissue that forms the supportive framework of organs like the spleen, lymph nodes, and bone marrow.

Concentric Lamellae

Circular layers of bone matrix in an osteon, surrounding a central canal in compact bone.