Which of the Following Correlational Coefficients Represents the Strongest Relationship

question 128

Multiple Choice

Which of the following correlational coefficients represents the strongest relationship between two variables?

• A) 0.00
• B) - .59
• C) + .70
• D) - .76

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Definitions:

Cash Flows

The movement of money into and out of a business, project, or financial product, considered essential for assessing the health and sustainability of an entity.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Capital Budgeting

The process businesses use to evaluate and select long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects.

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.