Which of the Following Statements About the Correlation Coefficient Is

question 2

Multiple Choice

Which of the following statements about the correlation coefficient is false?

• A)The values range between -1 to +1.
• B)A value of +1 implies that the returns for the two stocks move together in a completely linear manner.
• C)A value of -1 implies that the returns move in a completely opposite direction.
• D)A value of zero means that the returns are independent.
• E)None of the above (that is, all statements are true)

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