A Perfect Positive Relationship Has a Coefficient of Correlation of

question 108

Multiple Choice

A perfect positive relationship has a coefficient of correlation of

• A) 0.00
• B) +1.00
• C) -1.00
• D) none of these.

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Definitions:

Constant Growth Rate

A steady rate at which a variable, such as company earnings or dividends, increases over a specific period.

Required Return

The minimum expected return by investors for investing in a risky asset, taking into account the risk associated with the asset.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis.

Free Cash Flow (FCF)

Cash generated by a company after deducting capital expenditures from its operating cash flow, available for debt repayment, dividends, or reinvestment.