A _____ Correlation Coefficient Means That as One Variable Goes

question 42

Multiple Choice

A _____ correlation coefficient means that as one variable goes up, the other variable goes up with it.

• A) positive
• B) negative
• C) direct
• D) weak

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Definitions:

Arithmetic Return

The simple average of periodic returns of an investment over a specified time frame.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and magnitude of cash flows into and out of the investment.

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.