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.

---

Definitions:

Minutes

A unit of time equal to sixty seconds or one-sixtieth of an hour.

Sales of Ice Cream

The total revenue or quantity sold of ice cream over a specified period of time.

Sales of Soda

The commercial activities related to the buying and selling of carbonated soft drinks.

Correlation

The measure of the relationship between two variables or sets of data.