Describe the Strength and Direction of the Linear Correlation

question 292

Multiple Choice

Describe the strength and direction of the linear correlation.
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• A) Weak negative linear correlation
• B) Little or no linear correlation
• C) Strong positive linear correlation
• D) Weak positive linear correlation

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Definitions:

Dividend Yield

This ratio in finance shows the comparison between a company's annual dividend payout and its stock price.

Dividend Income

Earnings received from owning shares of a company that pays dividends.

Shares

Shares represent portions of equity in a company or an investment, entitling holders to a proportional share of any distributed profits, known as dividends, when they are announced.

Capital Gain

The profit from the sale of a capital asset, such as stocks or real estate, where the sale price exceeds the purchase price.