When You See a Coefficient of Correlation While Reading a Scientific

question 6

Multiple Choice

When you see a coefficient of correlation while reading a scientific research report,what does it indicate to you?

• A) the strength of a relationship between two variables
• B) a cause-and-effect relationship between many variables
• C) that the research was purely descriptive in nature
• D) the degree to which the research was scientific

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Definitions:

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Reinvestment Rate Risk

Reinvestment Rate Risk is the risk that the returns from reinvesting cash flows will be lower than initially anticipated due to changes in interest rates.

Annual Interest Payment

The total amount of interest paid on a bond or loan over the course of a year.

Coupon Rate

The percent of the face value paid as interest on a bond every year.