A Sector Fund Invests in Only One Industry

question 92

True/False

A sector fund invests in only one industry.

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Definitions:

Covariance Value

A measure indicating the extent to which two random variables change together, where a positive value implies direct correlation, and a negative value an inverse correlation.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed values and the values predicted by the model.

Correlation Coefficient

A numerical measure that quantifies the degree of correlation or linear relationship between two variables, ranging from -1 to 1.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together. A value closer to 1 or -1 indicates a strong relationship.