If a Group of Researchers Find That the Number of Books

question 2

True/False

If a group of researchers find that the number of books fifth grade students read is positively correlated with their scores on an intelligence test,it would be correct to conclude that having children read more increases their intelligence.

---

Definitions:

Option Rho

A measure of how much the price of an option should change when the risk-free interest rate changes by one percentage point.

American Put Option

A type of option that allows the holder to sell an asset at a specified price at any time before the expiration date.

Call Option

An agreement in finance that grants the purchaser the option, without the mandate, to acquire a security, bond, commodity, or different asset at a pre-determined price during a defined timeframe.

Variance

The average squared deviation between the actual return and the average return.