单选题
The correlation derived from a historical analysis of bond market returns in the U.S. and in Canada is 0.72. Which of the following statements is true? A. When the U. S. market has a below average performance, the Canadian market is likely to have a below average performance. B. When the U. S. market rises 1%, the Canadian market rises 0.72%. C. When the U. S. market rises, the Canadian market is more likely to decrease than increase.
【正确答案】
A
【答案解析】The positive correlation is strong, but not perfect. We know that the markets tend to move in the same direction on average, but not for every period.