Which Correlation Coefficient Indicates a Moderate Negative Relationship

question 35

Multiple Choice

Which correlation coefficient indicates a moderate negative relationship?

• A)-1.0
• B)-0.5
• C)+0.5
• D)+1.0

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Definitions:

Coupon Rate

The interest rate stated on a bond when issued, which represents the amount of interest paid to bondholders annually.

Interest Rates

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.

Bond's Price

The market price at which a bond is currently trading. This price can fluctuate based on interest rates, the bond's credit rating, and other factors.

Future Cash Flows

Estimated future financial earnings or expenditures, often used in investment analysis to determine value or profitability.