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How Is the Correlation Coefficient Important in Choosing Among Securities

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How is the correlation coefficient important in choosing among securities for a portfolio?


Definitions:

Job Performance

An evaluation of how effectively an employee performs their work tasks, often considered in terms of productivity, efficiency, and quality.

Myers-Briggs Type Indicator

A widely used personality assessment tool that categorizes individuals into one of 16 personality types based on preferences in processing information and making decisions.

Bimodally

Describing distribution or patterns that have two distinct peaks or modes.

Empirically

Relies on, deals with, or can be confirmed through observation or experience instead of theoretical understanding or purely logical reasoning.

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