If Stock A sometimes increases and sometimes decreases in value when Stock B increases in value at the same time, they are
A)negatively correlated.
B)uncorrelated.
C)positively correlated.
D)random bets.

Question

Quizplus · Accepted Answer

If there is no pattern in the relationship between the two stocks, then they are uncorrelated. It is possible for two stocks to move in the same direction some of the time and opposite directions at other times, without there being any consistent correlation between them. Therefore, the best choice is B - uncorrelated.

If Stock a Sometimes Increases and Sometimes Decreases in Value