A Correlation Coefficient of _____ Provides the Greatest Risk Reduction

question 74

Multiple Choice

A correlation coefficient of _____ provides the greatest risk reduction.

• A) 0
• B) -1
• C) +1
• D) +.5

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Definitions:

Owner's Equity Statement

A financial statement showing the changes in the equity of the company’s owners over a reporting period.

Net Income

The overall income a company retains following the deduction of all costs, such as taxes and operational expenses, from its gross revenue.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.