Which of the following statements is correct?
A)Stocks and long-term Treasury bonds is highly positively correlated.
B)Stocks and Treasury bills is highly positively correlated.
C)Stocks, long-term Treasury bonds, and Treasury bills is all highly correlated.
D)None of these statements are correct.

Question

Quizplus · Accepted Answer

None of the statements are correct. Stocks are generally negatively correlated with Treasury bonds and positively correlated with Treasury bills. Long-term Treasury bonds and Treasury bills have a very low correlation.

Which of the Following Statements Is Correct