The Linear Correlation Coefficient Measures the

question 42

Multiple Choice

The linear correlation coefficient measures the

• A) linear relationship between two variables, X and Y
• B) causal relationship between two variables, X and Y
• C) degree of curvature (from elliptical to a straight line) between two variables, X and Y
• D) relationship between two nominal variables, X and Y

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A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

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Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.

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