Y Can Be Most Accurately Predicted from X If the Correlation

question 51

Multiple Choice

Y can be most accurately predicted from X if the correlation between X and Y is _________.

• A) 0.80
• B) 0.00
• C) 0.45
• D) - 0.98

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Definitions:

Futures Contract

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a specified asset at a predetermined future date and price.

Futures Contracts

Agreements to buy or sell an asset at a future date at a price agreed upon today.

Actual Delivery

In finance, refers to the physical delivery of a financial instrument or commodity as opposed to a settlement made in cash or another financial arrangement.

Long Corn Futures

An investment position that speculates on the future price increase of corn by purchasing corn futures contracts.