In Foreign Exchange Trading,arbitrage Activity Could Lead to ________

question 4

Multiple Choice

In foreign exchange trading,arbitrage activity could lead to ________.

• A) risky trading transactions
• B) either gain or loss on the trade.
• C) only gain on the trade.
• D) a and b are correct.

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Definitions:

Coefficient of Correlation

A statistical measure that calculates the degree to which two variables move in relation to each other.

Best-fit Linear Equation

A mathematical formula that describes a straight line which closely approximates the relationship between two variables in a set of data.

Coefficient of Correlation

A measure that indicates the degree to which two variables are linearly related.

Covariance

A measure that indicates the extent to which two variables change together, but does not specify the nature of the relationship.