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Assume the returns on Stock X were positive in January,February,April,July,and November.The other months the returns on Stock X were negative.The returns on Stock Y were positive in January,April,May,July,August,and October and negative the remaining months.Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?
Compound Interest
The addition of interest to the principal sum of a loan or deposit, where interest also earns interest from then on.
Simple Interest
Simple interest is interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.
Present Value
The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.
Amortized Loan
A loan repaid in equal periodic amounts (or “killed off” over time).
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