Based on This Table of Correlation Coefficients of Real Dollar

question 17

Multiple Choice

Based on this table of correlation coefficients of real dollar returns of assets in different countries, which two countries appear to provide the greatest amount of benefit from diversification? $$\begin{array} { l r r r r } \hline & \text { US. } & \text { Japan } & \text { China } & \text { Brazil } \\\hline \text { U5. } & & & & \\\text { Japan } & 0.85 & & & \\\text { China } & 0.51 & 0.93 & & \\\text { Brazil } & 0.12 & - 0.21 & 0.06 & \\\hline\end{array}$$

• A) The U.S. and Japan
• B) China and Japan
• C) Japan and Brazil
• D) China and Brazil

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Definitions:

Differences

Distinctions or variations between two or more entities or phenomena.

Metacognition

Self-awareness of cognitive functions, commonly defined as "reflecting on one's thoughts."

False Belief

A misunderstanding or incorrect thinking that one accepts as true, often studied in developmental psychology to understand cognitive development.

Suggestibility

The quality of being inclined to accept and act on the suggestions of others.