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:

\(4x+5\)

A linear expression representing a line with a slope of 4 and a y-intercept of 5.

\(x-2\)

An algebraic expression representing the subtraction of 2 from the variable x.

Principal P

The initial amount of money on which interest is calculated in financial transactions.

Rounded

The process of adjusting a number to a nearby specified value, usually to a specified number of significant digits or decimal places.