The Term That Is Given When Two Variables Are Correlated

question 32

Multiple Choice

The term that is given when two variables are correlated but there is no apparent connection between them is:

• A) spontaneous correlation.
• B) random correlation.
• C) spurious correlation.
• D) linear correlation.

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Definitions:

Plowback Ratio

The Plowback Ratio, also known as the retention ratio, measures the proportion of earnings that are retained by the company rather than paid out as dividends.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings.

ROE

Return on Equity, a financial ratio that measures the profitability of a corporation in relation to stockholders' equity.

EPS

Earnings Per Share, a financial metric that divides a company's profit by the number of its shares outstanding.