The Data Below Are the Final Exam Scores of 10

question 5

Multiple Choice

The data below are the final exam scores of 10 randomly selected statistics students and the number of hours they studied for the exam. Calculate the correlation coefficient r. $$\begin{array} { l | c | c | c | c | c | c | c | c | c | c | } \text { Hours, } \mathrm { x } & 2 & 4 & 1 & 7 & 1 & 3 & 3 & 4 & 5 & 2 \\\hline \text { Scores, } y & 68 & 83 & 63 & 91 & 69 & 81 & 88 & 93 & 93 & 74\end{array}$$

• A)0.847
• B)0.991
• C)0.761
• D)0.654

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates the stock is more volatile than the market, while a beta less than 1 means it is less volatile.

Yield Curve

A graphical representation of the interest rates on debt for a range of maturities.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of holding a market portfolio.

Required Return

The minimum rate of return on an investment that investors expect or require to compensate for risks taken.