An investor, considering whether to add a mining stock to his portfolio as a long-term investment, compared,

Question:

An investor, considering whether to add a mining stock to his as a long-term investment, compared, for the years 1995-2000, the year's closing price for a Toronto-based mining firm and the year's closing value for the TSE 300 index, an indicator of general price trends for traded on the Toronto Stock Exchange (based on data from Management Information Circular, January 26, 2001, Twin Mining Corporation, Toronto).
a. Does the stock price appear to be related to the TSE 300 index?
b. These data were collected during a long period of general increase in TSE 300 values. If the TSE 300 were to begin to drop, would it be reasonable to rely on the results found in part (a)? Why or why not?

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