Of the Following, Which Correlation Coefficient Indicates the Strongest Relationship

question 103

Multiple Choice

Of the following, which correlation coefficient indicates the strongest relationship between two variables?

• A)+0.80
• B)+0.65
• C)-0.70
• D)-0.89

---

Definitions:

Payment Date

The date on which a dividend, bond interest, or other payment is actually disbursed to investors.

Dividend Reinvestment Plan

A program that allows investors to automatically reinvest their cash dividends in more shares of the issuing company.

Tax Deferred

A status of investment earnings, such as interest or dividends, that are not subject to tax until they are withdrawn or realized at a future date.

Equity Capital

The funds raised by a company through the sale of common or preferred shares, representing ownership interests in the company.