Which of the Following Statements About the Correlation Coefficient of the Returns

question 57

Multiple Choice

Which of the following statements about the correlation coefficient of the returns for two securities is not true?

• A) It is a statistical measure.
• B) It measures the relationship between the two securities' returns.
• C) It determines the cause of the relationship between the two securities' returns.
• D) Its value falls between -1 and +1.

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