Which of the Following Is the Strongest Correlation Between Two

question 182

Multiple Choice

Which of the following is the strongest correlation between two variables?

• A) +0.23
• B) -0.01
• C) +0.79
• D) -0.97

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Definitions:

Spot Rate

The present going rate for a specific currency to be purchased or exchanged, available for prompt delivery.

Hedge

A financial strategy used to reduce the risk of adverse price movements in an asset.

Hedge

An investment position intended to offset potential losses or gains that may be incurred by a companion investment, commonly used for risk management.

Exchange Variations

Refers to the fluctuations in the value of currencies in the foreign exchange market, impacting the value of foreign currency transactions.