If the Coefficient of Correlation Is −0

question 252

Multiple Choice

If the coefficient of correlation is −0.80,then the percentage of the variation in y that is explained by the variation in x is:

• A)80%
• B)64%
• C)89%
• D)None of these choices.

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Definitions:

Market Value

The current quoted price at which an asset or service can be bought or sold in a public marketplace.

Gordon Model

The Gordon Model, also known as the dividend discount model, is a method to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.

Intrinsic Value

The actual, inherent worth of an asset, independent of its market value, often calculated by investors to assess a company's underlying value.

Growth Rate

The rate at which a company's sales, earnings, dividends, or other key metrics increase over a particular period of time.