The Value of the Coefficient of Correlation (R)

question 118

Multiple Choice

The value of the coefficient of correlation (r)

• A) can be equal to the value of the coefficient of determination (r²).
• B) can never be equal to the value of the coefficient of determination (r²).
• C) is always smaller than the value of the coefficient of determination (r²).
• D) is always larger than the value of the coefficient of determination (r²).

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Definitions:

Par Common Stock

Common stock issued with a nominal or face value, used primarily for accounting purposes and often set at a low amount.

Treasury Stock

Stocks that the issuing company originally sold and then bought back, lowering the total number of shares available for trade on the market.

Fair Market

The price that an asset would sell for on the open market, under all conditions requisite to a fair sale.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares rather than cash.