Find the Correlation Coefficient $-0.0810$ C) $-0.7749$ D) $0.7537$

question 3

Multiple Choice

Find the correlation coefficient.
-Consider the data points with the following coordinates:

• A) 0
• B) \( -0.0810 \)
• C) \( -0.7749 \)
• D) \( 0.7537 \)

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Definitions:

Industry Group

A classification of companies that conduct business activities in the same sector or segment of the economy.

Index Model

A statistical model used to predict the returns of assets based on the returns of a benchmark market index and the assets' sensitivities to that index.

Covariances

A measure of how two stocks move together, indicating the degree to which their returns are interdependent.

Security Pairs

A strategy in trading involving two closely related securities, where one is purchased (long position) and the other is sold (short position).