The Direction of the Relationship Between Two Variables Is Given

question 3

Multiple Choice

The direction of the relationship between two variables is given by a correlation coefficient's ___; the strength of the relationship is given by the coefficient's ___.

• A) absolute value; value
• B) sign; absolute value
• C) sign; value
• D) absolute value; sign

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Definitions:

Constant-Growth

A valuation model assuming a steady rate of dividend growth for a stock.

Required Return

The minimum expected return investors demand for a particular investment, reflecting its risk level.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Internet Companies

Businesses that operate primarily on the internet, offering services or products through digital platforms, often focusing on technology, e-commerce, or social media.