Studies of correlations among monthly equity price index returns have found
A) low correlations between various U.S. equity indexes.
B) high correlations between various U.S. equity indexes.
C) high correlations between U.S. and non-U.S. equity indexes.
D) negative correlations between various U.S. equity indexes.
E) high correlations between equity and bond indexes.

Question

Quizplus · Accepted Answer

Studies have found high correlations between various U.S. equity indexes, indicating that they tend to move in a similar direction. This is due to factors such as market-wide events and economic indicators affecting the overall market.

Studies of Correlations Among Monthly Equity Price Index Returns Have