If the Correlation Between Variables X and Y Is 0

question 75

Multiple Choice

If the correlation between variables X and Y is 0.95, which of the following is true?

• A) X is a cause of Y
• B) Y is a cause of X
• C) low scores on X are accompanied by high scores on Y
• D) high scores on X are accompanied by high scores on Y
• E) a and d

---

Definitions:

Earnings Per Share

A company's profit divided by its number of outstanding shares of common stock.

Convertible Bond

A type of bond that allows bondholders the option to convert their debt into a predetermined number of shares of the issuing company.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, often higher than the face value to compensate investors.

Conversion Price

The predetermined price at which convertible securities like bonds or preferred stocks can be converted into a specific number of common shares.