5
QuizMultiple Choice

Investments — Test

Question 5 • Financial Math

Based on the chart, can we conclude that the drop in Company A's stock price caused the drop in Company B's stock price?

Answer
A
No, because correlation does not imply causation, and both companies could have been affected by the same external factor.
B
No, because Company B's stock price is independent of Company A's stock price.
C
Yes, because both companies experienced a similar drop in prices.
D
Yes, because Company A's price started to drop before Company B's price.
Previous
Next
Based on the chart, can we conclude that the…