Which of the Following Statements Is True

question 109

Multiple Choice

Which of the following statements is true?

• A)The correlation coefficient is -1 if there is a perfect positive correlation between two variables.
• B)The correlation coefficient is 0 if there is a perfect positive correlation between two variables.
• C)The correlation coefficient is 0.5 if there is a perfect positive correlation between two variables.
• D)The correlation coefficient is 1 if there is a perfect positive correlation between two variables.

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Definitions:

Inflation

The rate at which the comprehensive cost of goods and services inflates, sapping the buying power.

Total Percentage Return

The total return on an investment, including both capital gains and dividends, expressed as a percentage of the initial investment.

Dividends

Distributions of earnings from a corporation to its owners, sharing a part of the company's income.

Shares

Equity shares in a corporation or financial asset, offering stakeholders a balanced share in the declared profits through dividends.