What Type of Correlation Is Likely to Be Obtained Between

question 67

Multiple Choice

What type of correlation is likely to be obtained between reading ability and running ability of high-school students?

• A) Close to zero
• B) Either +1.00 or -1.00
• C) Strong positive
• D) Weak negative

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Definitions:

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income.

EPS

Earnings Per Share; a company's profit divided by the outstanding shares of its common stock, indicating company profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that excludes interest and income tax expenses.

EBIT

A profitability metric that calculates a company's profits excluding interest and income tax expenses.