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If All the Points in a Scatter Diagram Lie on the Least

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True/False

If all the points in a scatter diagram lie on the least squares regression line,then the coefficient of correlation must be 1.0.


Definitions:

Ask Price

The lowest price at which a seller is willing to sell a financial instrument or commodity.

Coupon Payments

Regular interest payments made to the holders of a bond, typically paid semi-annually or annually, based on the bond's coupon rate.

Interest Rates

The amount charged by lenders as a percentage of the principal, or the amount earned on an investment over a specific period.

Bond Prices

The market price at which a bond is currently trading, influenced by factors such as interest rates, credit quality, and maturity date.

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