Traditionally,a Correlation Is Deemed Statistically Significant If It

question 59

Multiple Choice

Traditionally,a correlation is deemed statistically significant if it

• A) is less than -.05 or greater than .05.
• B) would occur by chance alone less than 5 times out of 100.
• C) is less than -.95 or greater than .95.
• D) is greater than 1.00.

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Definitions:

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain period.

Right

In finance, the prerogative to buy or sell a security under specific conditions, often associated with options.

Specific Asset

An identifiable and tangible asset owned by a company, often critical to its operations or unique in nature, usually with specific investment criteria.

Swap Contract

A swap contract is a financial derivative agreement between two parties to exchange sequences of cash flows for a set period of time.