All of the Following Are True of Betas and Correlation

question 31

Multiple Choice

All of the following are true of betas and correlation coefficients EXCEPT:

• A)Betas describe the relationship between two variables exactly as correlations coefficients do.
• B)Both betas and correlation coefficients can tell you something about the strength of a relationship.
• C)Both betas and correlation coefficients can tell you something about the direction of a relationship.
• D)Betas from an analysis can be compared with other beta coefficients from the same analysis just as correlation coefficients can.

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Definitions:

Conditions Precedent

Specific conditions that must be fulfilled before a contract or agreement becomes legally binding.

Negotiable Instrument

An official written promise to pay a specified amount of money, which can be demanded at any time or payable at an agreed upon time, identifying the payer on the document.

Secondary Liability

A legal responsibility whereby one party is held liable for the actions of a third party, typically in copyright or partnership cases.

Unauthorized Signature

An unauthorized signature is a signature made without the express permission of the person whose name is signed, often considered fraudulent or voidable.