What Is the Correlation Between Stocks X and Y

question 49

Multiple Choice

What is the correlation between stocks X and Y?

• A)0.26
• B)-0.96
• C)0.96
• D)0.51

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Definitions:

Interest Burden

The ratio indicating the proportion of a company's pre-tax earnings that are consumed by interest payments.

Profit Margin

A financial ratio that shows what percentage of sales has turned into profits, indicating the efficiency of a company's cost management.

Accounts Payable

Accounts payable are amounts a company owes its suppliers or creditors for goods or services received that have not yet been paid for.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.