To Differentiate Between a Simple Correlation and Causation,researchers Often Divide

question 7

Short Answer

To differentiate between a simple correlation and causation,researchers often divide subjects into treatment and control groups and follow them for a number of years to see if one group has a higher incidence of disease than the other group.What is this type of study called?

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Definitions:

Equity Value

The total value of a company's shares of stock, representing the portion of the company's total value owned by its shareholders.

Plowback Ratio

The proportion of earnings retained by a company after dividends are paid, often used for reinvestment in the business or to pay down debt.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric that compares a company's stock price to its per-share earnings.

Capital Asset Pricing Model (CAPM)

A model used to determine the theoretical expected return of an investment given its risk, by relating the risk of an asset to its expected return through beta.