Which of the Following Correlations Represents a Weak Relationship

question 15

Multiple Choice

Which of the following correlations represents a weak relationship?

• A)-0.26
• B)-0.46
• C)-0.66
• D)-0.86

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Definitions:

Venture Capital Method

A valuation method used in private equity to estimate the value of a startup by considering expected future cash flows and potential returns to investors.

The First Chicago Method

A valuation approach that estimates the value of a project or investment by using a combination of multiples and net present value of future cash flows.

Users of Capital

Individuals or entities that borrow or utilize funds to finance their operations, investments, or other expenditures in pursuit of generating returns or growth.

Suppliers of Capital

Entities or individuals that provide financial resources to other entities in exchange for financial returns.