When Stock Returns Exhibit Positive Serial Correlation, This Means That

question 64

Multiple Choice

When stock returns exhibit positive serial correlation, this means that ________ returns tend to follow ________ returns.

• A) positive; positive
• B) positive; negative
• C) negative; positive
• D) positive; zero

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test or survey, reflecting the extent to which all items assess the same characteristic.

Face Validity

The extent to which a test or measurement appears effective in terms of its stated aims to those taking or observing it, on the surface level.

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Correlate

To possess a reciprocal relationship or link, where one element influences or relies upon another.