You Are Given the Following Information About Y and X

question 60

Multiple Choice

You are given the following information about y and x. $$\begin{array} { l l } \text { Dependent Variable } ( y ) & \text { Independent Variable } ( x ) \\5 & 1 \\4 & 2 \\3 & 3 \\2 & 4 \\1 & 5\end{array}$$ The sample correlation coefficient equals

• A) 0.
• B) +1.
• C) -1.
• D) -.5.

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Definitions:

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.