The Authors Present a Comparison of Correlation Coefficients Between Major

question 43

Multiple Choice

The authors present a comparison of correlation coefficients between major global equity markets over a variety of different periods. The comparison yields a number of conclusions listed here EXCEPT:

• A)the correlation between equity markets for the full twentieth century shows quite low levels of correlation between some of the largest markets (close to 0.50 in some cases).
• B)that same century of data, however, yields a high correlation between the U.S. and Canada (0.80).
• C)the correlation coefficients between those same equity markets for selected sub periods over the last quarter of the twentieth century, however, show significantly different correlation coefficients.
• D)None of the answers listed are inaccurate conclusions.

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Definitions:

Ecological Economists

Experts who study the relationship between ecological systems and economic systems, often focusing on sustainability and environmental impacts of economic decisions.

Environmental Economists

Experts who study the economic impacts of environmental policies and the cost-benefit analyses of preserving or degrading the environment.

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An economic theory that focuses on supply, demand, and the price mechanism as the driving forces behind production, distribution, and consumption of goods and services.

Economic Systems

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