The Correlation Coefficient Ranges from -1

question 74

Multiple Choice

The correlation coefficient ranges from -1.0 to +1.0,with values closer to ±1.0 indicating

• A)a more positive relationship between two factors
• B)a stronger relationship between two factors
• C)that two factors are less likely to be related
• D)that the correlation is due to outliers

---

Definitions:

Expected Rate Of Return

The profit or loss an investor anticipates on an investment, stated as a percentage of the initial investment.

Total Investment

The sum of all expenditures on capital assets, including stocks, bonds, real estate, and physical goods, within a specific period.

Opportunity Cost

The price of missing out on the next best option while making a choice or deciding between various possibilities.

Borrowed Funds

Capital that is obtained through loans or credit, typically for investment or expenditures, that needs to be repaid.