Which Number Represents the STRONGEST Correlation Coefficient (R)

question 7

Multiple Choice

Which number represents the STRONGEST correlation coefficient (r) ?

• A)-.50
• B).70
• C)-.10
• D)0.01

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Definitions:

Actual Loan Amount

The total sum of money borrowed by an individual or entity under the terms of a loan agreement.

Effective Interest Method

An accounting method for amortizing bond premiums or discounts that results in a constant rate of interest over the life of the bond.

Semiannually

Refers to an event or action that occurs twice a year.

Held To Maturity

Refers to debt securities that an investor intends and has the ability to hold until they mature, as opposed to selling before maturity.