What Type of Correlation Occurs When One Variable Increases While

question 37

Multiple Choice

What type of correlation occurs when one variable increases while the other variable decreases?

• A)positive correlation
• B)negative correlation
• C)no correlation
• D)multiple correlation

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Definitions:

Stock Index

An indicator used to measure and report value changes in a selection of stocks, which represents a specific segment of the stock market.

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.

Cash Settlement

The provision of some futures contracts that requires not delivery of the underlying assets but settlement according to the cash value of the asset.