Correlation Is a Statistical Measure of the Relationship Between a Series

question 13

Multiple Choice

Correlation is a statistical measure of the relationship between a series of numbers representing data. Which of the following statements about correlation is (are) correct?
I. Perfectly negatively correlated describes two negatively correlated stocks that have a correlation coefficient of -1.
II. Perfectly positively correlated describes two positively correlated stocks that have a correlation coefficient of 0.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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