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I a Coefficient of Correlation Close to 0 (Say, 0

question 156

Multiple Choice

i. A coefficient of correlation close to 0 (say, 0.08) shows that the relationship between two variables is quite weak. ii. Coefficients of -0.91 and +0.91 have equal strength.
iii. If the coefficient of correlation is 0.68, the coefficient of determination is 0.4624.

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Definitions:

Technical Analysis

The study of past market data, primarily price and volume, to forecast future price movements.

Security Prices

The monetary value assigned to a security (such as a stock, bond, or derivative) in a marketplace, determined by supply and demand dynamics.

New Information

New information refers to previously unknown data or insights that become available, often affecting decision-making, market movements, or scholarly research.

Market Breadth

An indicator used to gauge the number of stocks advancing versus those declining, providing insights into the overall health and direction of the market.

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