Share Prices Tend to Move Together If They Are Affected

question 65

Multiple Choice

Share prices tend to move together if they are affected by:

• A)common economic events.
• B)events unrelated to the economy.
• C)company specific events.
• D)idiosyncratic shocks.

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Definitions:

Sampling Distribution

A statistical probability distribution derived from a high volume of samples taken from a particular population.

Unbiased Estimator

A statistical estimator that, on average, equals the parameter being estimated.

Population Parameter

A population parameter is a numerical value that characterizes a certain aspect of a population, such as its mean or variance.

Expected Value

The long-term average value of a random variable, representing its mean outcome over an infinite number of trials.