The concept of stock correlation shows:
A) The extent to which the variance of two stocks are similar.
B) The average returns of two stocks.
C) The average risk of two stocks.
D) How risky two assets are.
E) The extent to which the returns on two assets move together.

Question

Quizplus · Accepted Answer

Stock correlation measures how the returns on two assets move in relation to each other, indicating whether they tend to increase or decrease together.

The Concept of Stock Correlation Shows