If the Covariance of Two Stocks Is Positive, These Stocks

question 76

True/False

If the covariance of two stocks is positive, these stocks tend to move together over time.

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Definitions:

Cramer's V

A measure of association between two nominal variables, giving a value between 0 and 1 that indicates the strength of association.

Effect Size

A quantitative measure of the magnitude of the experimental effect.

Expected Frequencies

In statistics, the anticipated counts in each category of a contingency table if there were no association between the variables.

Multiple Correlation

A statistical technique that predicts the value of one variable based on the combined values of two or more other variables.