Which of the Following Objects Must Be the Same Sign

question 39

Multiple Choice

Which of the following objects must be the same sign as the covariance of variables X and Y?

• A) Unconditional correlation of X and Y.
• B) Partial correlation of X and Y holding Z constant.
• C) Semi-partial correlation of X and Y holding Z constant.
• D) Semi-partial correlation of Y and X holding Z constant.

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Definitions:

Annually

Happening annually.

EAR

The Effective Annual Rate, a measurement of interest that takes into account the effect of compounding over the period of time it is applied.

Compounded Monthly

The process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or investment, with the compounding occurring on a monthly basis.

Effective Annual Rate

The interest rate on an investment or loan that considers the effects of compounding over a given time period.