The Sign (+ or -)Of a Correlation Coefficient Indicates the Direction

question 58

True/False

The sign (+ or -)of a correlation coefficient indicates the direction of a relationship between two factors.

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Definitions:

Asset Turnover

A measure of how efficiently a company uses its assets to generate sales; computed by dividing net sales by average total assets.

Price-earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue.