Which of the Following Is True

question 29

Multiple Choice

Which of the following is true?

• A) When the correlation coefficient is significant, the slope coefficient will also be significant for a given level of α.
• B) When the correlation coefficient is significant, the slope coefficient will never be significant for a given level of α.
• C) The test statistics for the correlation coefficient and the slope coefficient are the same.
• D) When the slope coefficient is significant, the correlation will not necessarily be significant for a given level of α.
• E) The significance of the correlation and slope are unrelated.

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Definitions:

Annual Dividend

The total sum of the dividends paid to shareholders over a year, often cited per share.

Rates of Return

Financial results such as gains or losses on an investment over a predetermined time frame, expressed as a percentage of the original investment fee.

Net Cash Flows

The amount of cash that is generated or lost by a business in a given time period, calculated as cash inflows minus cash outflows.

Rate of Return

The returns or deficits generated by an investment over a certain span, represented as a percentage of the initial financial commitment.