If One Calculates R for Raw Scores, and Then Calculates

question 65

Multiple Choice

If one calculates r for raw scores, and then calculates r on the z scores of the same data, the value of r will _______.

• A) stay the same
• B) decrease
• C) increase
• D) equal 1.00

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Definitions:

Intrinsic Value

The real or fundamental value of a stock, determined through analysis of the company's financials and potential.

Constant-Growth DDM

A version of the dividend discount model that assumes dividends grow at a constant rate indefinitely.

Dividend

Funds disbursed by a corporation to its owners, often from the company's profits, as a profit sharing.

Expected Growth Rate

The predicted percentage increase in the value of an investment, asset, or economy over a certain period of time.