Which of the Following Tend to Signal That Stock Prices

question 1

Multiple Choice

Which of the following tend to signal that stock prices are likely to rise in the future?
I.Employment increases after several months of recession.
II.Interest rates are low compared to the recent past.
III.Major market indexes have just reached record highs.
IV.Housing starts increase after several months of decline.

• A)I and II only
• B)II and III only
• C)I, II and IV only
• D)I, II, III and IV

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing how one may predict the other.

Naturalistic Observation

The study method where subjects are observed in their natural environment without any manipulation by the observer.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.

Independent Variable

In experimental research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.