The Correlation Coefficient Measures the

question 76

Multiple Choice

The correlation coefficient measures the

• A)rate of return of individual stocks.
• B)direction of movement of the return of individual stocks.
• C)degree to which the returns of two stocks move together.
• D)degree of s unique risk present in the standard deviations of a pair of stocks.

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Definitions:

Responsibility

involves the duty or obligation to perform or complete a task, with an inherent accountability for the successful completion and outcomes.

Vendors

Businesses or individuals that sell products or services to other businesses or consumers.

Lease Decision

The choice between leasing or purchasing an asset, involving considerations of cost, duration, and financial impact.

Confidentiality

The obligation not to share or disclose information without proper authorization, especially information that is private, sensitive, or proprietary.