A Correlation Coefficient of Zero Indicates

question 31

Multiple Choice

A correlation coefficient of zero indicates:

• A) the projects have the same expected value.
• B) there is no correlation and no risk reduction between combined projects.
• C) there is no correlation,but some risk reduction when the projects are combined.
• D) the projects have the same standard deviation.

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Definitions:

Income Account

An account used in accounting to track revenue or income generated by a business or individual over a period of time.

Rent Expense

An account representing the cost incurred from renting premises, equipment, or other assets for business operations over a specific period.

Interest Revenue

Income earned from lending money or through investments in interest-bearing assets.

Temporary Account

An account that is used to collect balances over an accounting period and is reset to zero at the end of the period, such as revenue and expense accounts.