If Variables Change in the Same Direction, What Type of Correlation

question 65

Multiple Choice

If variables change in the same direction, what type of correlation is this called?

• A)positive correlation
• B)negative correlation
• C)positive causation
• D)negative causation

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Definitions:

Par Value

Par value is a nominal or face value assigned to a share of stock or bond when it is issued, which has little significance today but was historically the legal capital of the share.

Capital Gain

The profit earned from the sale of an asset or investment exceeding its purchase price.

Paid-In Capital

The total amount of money shareholders have invested in a company through the purchase of stock, excluding any stock purchased on secondary markets.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, as stated by the issuer.