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Assume the Returns on Stock X Were Positive in January,February,April,July,and

Question 37

Multiple Choice

Assume the returns on Stock X were positive in January,February,April,July,and November.The other months the returns on Stock X were negative.The returns on Stock Y were positive in January,April,May,July,August,and October and negative the remaining months.Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?


A) -1.0
B) -0.5
C) 0.0
D) 0.5
E) 1.0

Correct Answer:

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