Examlex
Steven's college has a major problem with student drinking on campus. He decided to study student drinking behavior so that he could help the college identify why students drink and to inform policies and practices that would reduce problematic drinking. What type of research is he conducting?
Correlation Coefficient
The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).
Portfolio Effect
The impact of diversifying investments across different assets, which can reduce risk without proportionately lowering expected returns.
Investment Decisions
Choices made by individuals or firms regarding the allocation of resources to different assets or projects with the expectation of earning a return.
Correlation
A numerical indicator that captures how much two variables move in tandem, showing both how strong their linkage is and in what direction it lies.
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