If a Correlation Is -1

question 137

Multiple Choice

If a correlation is -1.00,then which type of relationship exists?

• A) perfect negative
• B) moderately strong
• C) weak
• D) nonexistent

---

Definitions:

Rate of Return

The percentage gain or loss on an investment over a specified time period, relative to the investment's initial cost.

NPVGO

Net Present Value of Growth Opportunities is the net present value of projects or investments that a company expects to undertake in the future as part of its growth strategies.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Annual Dividend

The total sum of the dividends paid to shareholders over a year, often cited per share.