The Following Values Are Listed as Coefficients of Correlation (R)

question 144

Multiple Choice

The following values are listed as coefficients of correlation (r) .The one that indicates an inverse relationship between the two variables x and y is:

• A) 0.0.
• B) -0.8.
• C) 0.9.
• D) 1.3.
• E) -1.4.

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Definitions:

Standard Deviation

Standard deviation is a statistical measure that quantifies the variability or dispersion of a set of data points or investment returns around their mean.

Historical Returns

Historical returns refer to the past performance or yield of an investment or portfolio over a specified period of time.

Years

A measurement of time that typically consists of 365 days, or 366 in a leap year, used as a basic unit for gauging durations and intervals.

Total Percentage Return

A measure of the overall return on an investment, including both capital gains and dividends or interest, expressed as a percentage of the initial investment value.