The Correlation Coefficient Can Take Any Value from

question 52

Multiple Choice

The correlation coefficient can take any value from

• A)−1.0 to 1.0.
• B)0 to 1.0.
• C)−1.0 to 0.
• D)1.0 to 10.0.

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Definitions:

Financial Leverage

The use of borrowed money (debt) to amplify the potential return of an investment or project.

Debt/Equity Ratio

The indicator that compares the role of debt and equity in financing company assets.

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.