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

Question

Quizplus · Accepted Answer

None of these statements is correct. Stocks and bonds typically have a negative correlation, as investors tend to shift towards one when the other is performing poorly. Additionally, Treasury bills are short-term investments and do not have a strong correlation with long-term stocks and bonds.

Which of the Following Statements Is Correct