Pearson's R Is Only Useful for Detecting a __________ Line

question 14

Short Answer

Pearson's r is only useful for detecting a __________ line relationship.

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Definitions:

Small-Company Stocks

Stocks of companies with relatively small market capitalization, often characterized by higher volatility and potentially higher returns.

Canadian Common Stocks

Shares of ownership in Canadian corporations that entitle holders to dividends and voting rights.

Risk

The exposure to uncertainty or the variability of returns associated with a given asset or investment.