Correlation Is The

question 36

Multiple Choice

Correlation is the:

• A)squared measure of a security's total risk.
• B)extent to which the returns on two assets move together.
• C)measurement of the systematic risk contained in an asset.
• D)daily return on an asset compared to its previous daily return.
• E)spreading of an investment across a number of assets.

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Definitions:

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Earnings-At-Risk Pay Plan

A compensation plan in which a portion of an employee's earnings is conditional, based on meeting certain performance criteria.

Merit Pay Plan

A compensation strategy designed to reward employees based on their job performance, as opposed to seniority or hours worked.

Incentive Pay Plan

A compensation strategy designed to reward employees based on their performance, achievements, or meeting specific targets.