What is the likely correlation between gold and speculative internet stocks?
A) Zero
B) Positive
C) Negative
D) Perfect negative

Question

Quizplus · Accepted Answer

Gold often acts as a safe-haven asset during times of economic uncertainty or market volatility, while speculative internet stocks are considered high-risk investments that can fluctuate greatly. Therefore, when investors are wary and move towards gold, they might simultaneously move away from riskier assets like speculative internet stocks, leading to a negative correlation between the two.

What Is the Likely Correlation Between Gold and Speculative Internet