1. The stock market moves in an upward direction more often than in a downward direction True False 2. Market drops are generally for shorter periods of time than market increases True False 3. The statistical covariance can be defined as the statistical measure of the direction and degree to which two variables tend to move over time. True False 4. The returns as shown suggest that the correlation coefficient for S and I would be CORRELATION: STOCK X AND STOCK Y 10% 5% Stock Y 15% -10% -5% 0% 0% -5% 5% 10% -10% -15% Stock X