This diagram appeared in the Wall Street Journal on February 12, 2022 (Jason Zweig, “The Market Doesn’t Care About History.” pg. B5). The data set is a time series, where each observation is one month. The horizontal axis measures the price-earnings ratio for the S&P 500 during that month. The vertical axis measures the ensuing 10-year annualized rate of return for the S&P 500 (adjusted for inflation).

What can we conclude based upon this diagram? (Check all that apply.)

During this time period, when the price-earnings ratio and the ensuing 10-year annualized return (adjusted for inflation) tend to move in the same direction.

During this time period, the correlation between these two variables is positive.

During this time period, the correlation between these two variables is negative.

During this time period, when the price earnings ratio is lower, the ensuing 10-year annualized return (adjusted for inflation) tends to be lower.

During this time period, there is a negative relationship between the price-earnings ratio and the ensuing 10-year annualized return (adjusted for inflation)

During this time period, the correlation between these two variables is zero

During this time period, the price-earnings ratio and the ensuing 10-year annualized return (adjusted for inflation) tends to move in the opposite direction.

During this time period, there is no relationship between the price-earnings ratio and the ensuing 10-year annualized return (adjusted for inflation).

During this time period, when the price-earnings ratio is lower, the ensuing 10-year annualized return (adjusted for inflation) tends to be higher.

During this time period, when the price-earnings ratio is higher, the ensuing 10-year annualized return (adjusted for inflation) tends to be higher.

During this time period, there is a positive relationship between the price-earnings ratio and the ensuing 10-year annualized return (adjusted for inflation).

During this time period, when the price-earnings ratio is higher, the ensuing 10-year annualized return (adjusted for inflation) tends to be lower.