Testing for the Existence of Correlation Is Equivalent to

question 12

Multiple Choice

Testing for the existence of correlation is equivalent to

• A) testing for the existence of the Y-intercept (β₀).
• B) testing for the existence of the slope (β₁).
• C) the confidence interval estimate for predicting Y.
• D) None of the above.

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Definitions:

Index Fund

An index fund is an investment fund designed to follow the performance of a specific market index, offering a broad market exposure with low operating costs.

Portfolio Expected Return

The weighted average of the expected returns on the assets contained within a portfolio.

Portfolio Risk

Portfolio Risk refers to the potential for loss in an investment portfolio, arising from the variability of returns from the various assets held within the portfolio.

Index Funds

Investment funds that replicate the performance of a specific index of stocks, bonds, or other financial assets.