The Correlation Coefficient Identifies What Causes the Relative Movement in Returns

question 33

True/False

The correlation coefficient identifies what causes the relative movement in returns between two securities.

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Definitions:

Interaction Effect

effect of one independent variable on the dependent variable at the different levels of another independent variable.

Main Effect

Effect of an independent variable on the dependent variable within a factorial research design.

Simple Effect

Effect of one independent variable at one of the levels of another independent variable.

Independent Variable

The factor in a study that the experimenter alters to see how it impacts the outcome variable.