Correlations Can Be Used to Make Predictions

question 46

True/False

Correlations can be used to make predictions.

---

Definitions:

Dividend

A disbursement by a company to its shareholders, often from its profit reserves.

Growth Rate

The rate at which a company's earnings, revenue, or another financial metric increases over a specific period.

Cost of Preferred Stock

The required rate of return by investors for owning preferred stock in a company.

Market Rate of Return

The average or expected rate of return on an investment in the market.