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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Definitions:

Lifestyle Choices

Decisions individuals make about how to live and behave, including diet, exercise, leisure activities, and work, which can affect their health and well-being.

Physical Health

A state of well-being in which an individual realizes their own abilities, can cope with normal stresses of life, and is able to make a contribution to their community.

Type A

A personality type characterized by high levels of competitiveness, self-driven ambition, impatience, and urgency, often linked to stress and heart disease.

Type B

A personality type characterized by a more relaxed, less time-urgent, and less competitive approach to life compared to Type A.