The Numerical Value for a Correlation Can ____.​

question 38

Multiple Choice

The numerical value for a correlation can ____.​

• A)never be greater than 1.00​
• B)​never be less than 1.00
• C)​never be greater than 1.00 and can never be less than -1.00
• D)​be greater than 1.00 and can be less than -1.00

---

Definitions:

Standard Deviation

Standard Deviation measures the amount of variation or dispersion from the average, indicating the risk associated with a variable.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, typically within a year.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to that of the average market risk.

Risk Level

The degree of uncertainty or potential financial loss inherent in an investment decision.