Interpretation of the provided graphs shows contrasting movements: high volatility in the overall market index (Sensex) versus a steadier upward trend with less volatility in the automobile sector shares.
The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the fluctuation in the average value of automobile shares in the same period (actual values not given). Which one of the following inferences can be drawn from the graphs?
Asked in UPPCS Prelims 2000 · Topic: Money & Banking (Financial Markets: Money Market and Capital Market (Components, Instruments, Role))
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Answer: C. Automobile shares have shown a steady im‐ provement in price, unaffected by large fluctuations in BSE Sensex
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