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If the Coefficient of Correlation Is 1

question 36

True/False

If the coefficient of correlation is 1.0,then the coefficient of determination must be 1.0.


Definitions:

Net Present Value

A financial metric used to assess the value of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Current Value

The present monetary or market worth of an asset or investment.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned, paid by borrowers to lenders.

Present Value

The contemporary valuation of an anticipated sum of money or cash flow sequence, based on a given return rate.

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