You have plotted the data for two securities over time on the same graph, i.e., 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.
E)one can not get any idea of the correlation from a graph.

Question

Quizplus · Accepted Answer

When the movements of two securities rise and fall together, it indicates that they move in the same direction over time, which is a characteristic of a strong positive correlation.

You Have Plotted the Data for Two Securities Over Time