If There Is No Relationship Between Two Variables,the Correlation Coefficient

question 47

Multiple Choice

If there is no relationship between two variables,the correlation coefficient between them would be:

• A)+1.0
• B)-1.0
• C)+0.50
• D)0

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Definitions:

Risk-Adjusted Returns

A measure that puts the returns of an investment into perspective by taking into account the level of risk involved in producing those returns.

Market Proxy

A benchmark that represents the overall movement of the stock market.

Utility Functions

Representations of the satisfaction or pleasure consumers derive from consuming various goods or services.

S-Shaped

Describes a curve or function that depicts an initial slow growth, followed by rapid acceleration, and then a plateau or leveling off, commonly found in logistic growth models.