You Have Plotted the Data for Two Securities Over Time

question 55

Multiple Choice

You have plotted the data for two securities over time on the same graph, ie., the month return of each security for the last 5 years. If the pattern of the movements of the two securities rose and fell as the other did, these two securities would have:

• A) no correlation at all.
• B) a weak negative correlation.
• C) a strong negative correlation.
• D) a strong positive correlation.

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Definitions:

Style Of Life

A unique character structure or pattern of personal behaviors and characteristics by which each of us strives for perfection. Basic styles of life include the dominant, getting, avoiding, and socially useful types.

Complex

To Jung, a core or pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme, such as power or status.

Inferiority Complex

A condition that develops when a person is unable to compensate for normal inferiority feelings.

Organic Inferiority

A term used in Adlerian psychology to describe a perceived or actual physical limitation, which an individual may compensate for by developing certain skills or behaviors.