In a Study, the Correlation Coefficient for W and X

question 24

Multiple Choice

In a study, the correlation coefficient for W and X is -0.25. The correlation coefficient for X and Y is 0.20. The coefficient of determination for X and Z is 0.16. The coefficient of alienation for Y and Z is 0.90. Which pair of variables has the highest amount of variance accounted for?

• A) X and Y
• B) X and Z
• C) Y and Z
• D) W and X

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Definitions:

Bond Convexity

A measure of the curvature or the degree of the curve in the relationship between bond prices and bond yields, demonstrating how the duration of a bond changes as the interest rate changes.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, expressed as an annual rate.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical returns.

Initial Yield

The initial yield is a financial measure indicating the first year's return on an investment in real estate or bonds, often expressed as a percentage of the investment's cost.