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A Correlation Matrix Must Always Have 1's Along Its Diagonal

question 2

True/False

A correlation matrix must always have 1's along its diagonal (because a variable is always perfectly correlated with itself)and the correlations between variables elsewhere.


Definitions:

Discount Rate

The discount rate applied to calculate the present value of future cash flows.

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase efficiency and consistency in production.

Profitability Index

A financial metric that measures the return on investment for a project or investment relative to its cost.

Investment Projects

Initiatives undertaken by corporations or investors that involve significant capital outlay with the expectation of earning a return on investment over time.

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