Which of the Following Correlation Coefficients Is Indicative of the Strongest

question 54

Multiple Choice

Which of the following correlation coefficients is indicative of the strongest relationship between two variables?

• A)+0.65
• B)0.00
• C)-0.87
• D)-0.24

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined call price.

Redeemed

Refers to the repayment or buyback of securities, such as bonds or preferred stocks, before their maturity.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitling them to receive a specified amount of interest and repayment of the principal.