A Correlation Coefficient of Zero Indicates

question 67

Multiple Choice

A correlation coefficient of zero indicates

• A) the projects have the same expected value.
• B) there is no correlation and no risk reduction when the projects are combined.
• C) there is no correlation, but there is some risk reduction when the projects are combined.
• D) the projects have the same standard deviation.

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Definitions:

Adjusting Journal Entry

Entries made in accounting records to update the balances of accounts before producing financial statements, ensuring they adhere to the accrual basis of accounting.

Salaries

Compensation given to employees for their labor or services, typically paid on a monthly or biweekly basis.

Five-day Week

A common work schedule that consists of five working days, usually Monday through Friday, followed by a two-day weekend.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, recognizing the decrease in the value of the asset over time.