Which of the Following Statements About the Correlation Coefficient Is

question 52

Multiple Choice

Which of the following statements about the correlation coefficient is false?

• A) The values range between -1 to +1.
• B) A value of +1 implies that the returns for the two stocks move together in a completely linear manner.
• C) A value of -1 implies that the returns move in a completely opposite direction.
• D) A value of zero means that the returns are independent.
• E) None of the above (that is, all statements are true)

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