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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Definitions:

Transferor

An individual or entity that transfers rights or property to another, typically as part of a sale or agreement.

Negotiable Instrument

A paper that promises to pay a certain sum of money, which can be demanded at any time or paid at an agreed moment, and identifies the individual responsible for the payment.

Presentment

The act of making a demand for the drawee to pay.

Dishonored

refers to a financial instrument, like a check, being refused by the bank upon presentation for payment due to insufficient funds or other reasons.