Assuming a Linear Relationship Between X and Y, If the Coefficient

question 114

Multiple Choice

Assuming a linear relationship between X and Y, if the coefficient of correlation (r) equals - 0.30,

• A) the slope (b₁) is negative.
• B) there is no correlation.
• C) variable X is larger than variable Y.
• D) the variance of X is negative.

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Definitions:

Risk Yield

The return on investment that compensates for the level of risk undertaken, with higher risk typically offering the potential for higher yield.

Total Return

The overall financial gain or loss on an investment over a period of time, including dividends, interest, and capital gains.

Annual Dividends

The total amount of dividend payments declared by a corporation in one fiscal year, distributed to shareholders on an annual basis.

Dividend Increase

A company's action to raise the amount of money paid to shareholders out of its profits on a per-share basis.