The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b. Between 0 and +2, inclusive c. Between 0 and +1, inclusive d. Between minus infinity and plus infinity

The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b. Between 0 and +2, inclusive c. Between 0 and +1, inclusive d. Between minus infinity and plus infinity

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 6DQ

See similar textbooks

Related questions

Q: Read the z statistic from the normal distribution table and choose the correct answer. For a…

Q: what are the three probability ratios equations?

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: What is the put-call ratio? What is it used for? What are considered high and low values and what do…

A: The question is based on the concept for indicators of the stock market performance. The Put-Call…

Q: The following is a set of data from a sample of n =11items Complete parts (a) through left…

Q: Which of the following is NOT true regarding the normal distribution= Multiple Choice It is…

A: Introduction: The normal distribution is one of the important and valuable distributions in the…

Q: If two returns are positively related to each other, they will have a ________, and if they are…

A: Covariance: calculates the directional relationship between two variables.

Q: Calculate: - Standard Deviation - Beta - Covariance

A: Risk means possibility that results of uncertain events will be different from the expected results.…

Q: In a regression analysis, the variable that is being predicted is the a. Intervening variable O b.…

A: The variable that is attempted to clarify or anticipate is known as the the response variable,…

Q: “High correlation between two variables means that one is the cause and the other is the effect.” Do…

A: Correlation:Correlation is a way to ascertain the basic equation or bond between two given…

Q: elated factor can (pick the best) Select one: a. reverse an association

A: The answer has been mentioned below.

Q: a firm uses ther roviding for the e ayout ratio will b True False

A: The right answer is true

Q: In linear regression, compare independent and dependent variables.

A: Linear regression refers to a time series model in statistics that is used for predictive analysis.…

Q: sion equation y = a + bx, the letter b is best described as a (n):

A: In the standard regression equation, b represents the variable coefficient.

Q: The value of a correlation is reported to be r = 0.25. How is this interpreted?

A: Correlation: In the financial and investing sectors, correlation is a statistic that indicates the…

Q: Which method of forecasting is most widely used? a. Regression analysis. b. Exponential smoothing.…

A: Regression analysis method of forecasting is the most widely used method of forecasting....

Q: Which of the following is incorrect? V [ Select ] P= A {[(1+i)^N - 1]/[(1)]} * [(1+i)^(-N)] P= G…

A: Time Value of Money is the concept which determines that value of dollar today is more than the…

Q: If the B/C ratio for three alternatives A B, and Care 2.8, 3.3 and 1.95 respectively, the best…

A: Benefit-Cost Ratio: The projects which have a B/C ratio greater than 1 are considered good projects…

Q: Which one of the following statements regarding the coefficient of determination is NOT correct?

A: Coefficient of correlation is the measure which is used by the management of the company so that it…

Q: A variable which can assume any value within a given range is a. Discrete variable O b. Quantitative…

Q: Consider the following utility function: u = 400 (1 + 1)−1. xy a. Is this utility function…

A: Solution-

Q: “Multicollinearity exists when the dependent variable and the independent variable are highly…

A: Multicollinearity: Multicollinearity refers to a condition where two or more explanatory variables…

Q: Find the correlation of assets S and T if the standard deviation of S is 4 and standard deviation of…

A: Correlation is a statistic that helps in measuring the degree to which two variables move in…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: coefficient of correlation is used to obtain what?

A: The correlation coefficient could be a measurable degree of the quality of the connection between…

Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error

Q: The F/G factor values can be derived by multiplying (P/F ) and ( A/G ) factor values O (F/P) and…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statement is true of a covariance matrix? a. The diagonal values are…

A: A covariance matrix is a representation of variances and covariances between assets. Hence, a n × n…

Q: The following information pertains to data that have been gathered in the process of estimating a…

A: Given information, Mean value of the dependent variable= 30 Mean value of the independent…

Q: The following is a set of data from a sample of n = 11 items. Complete parts (a) through (c). 1 14…

A: a. X Y 14 28 13 26 4 8 15 30 3 6 2 4 16 32 12 24 10 20 19 38 1 2…

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

Q: When two variables are not perfectly related, then their correlation would be one? a.true…

A: In order to determine the relationship between the variables correlation is used, if in changing in…

Q: Suppose that Mr Plutus has been asked to choose between various pairs of strategies and he responds…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Compute (F/A,%13,20) using the closed-form formula and call that X. Also approximate it; by applying…

A: For X X = (F/A, 13%, 20) Y = Y0 ×X1 - X + Y1×X-X0(X1-X0) Y0 = (F/A, 12%, 20) Y1 = (F/A, 15%, 20)

Q: The factor (F/A,i,n) is approximately equal to the factor (P/A,I,n) Select one: True False

A: a. The factor (F/A, i,n) is the compound amount factor that is used to calculate the future value of…

Q: Find the correlation of assets A and B if the standard deviation of A is 4 and standard deviation of…

A: Correlation is a statistic that helps in measuring the degree to which two variables move in…

Q: Which of the following indicates that two variables tend to move in the same direction? a.negative…

A: Negative covariance means that the returns move in opposite direction. So, Option a is incorrect.…

Q: the formula for the correlation statistic is?

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: Fill in the blanks. a. In multiple linear regression analysis, the independent variables are called…

A: Fill in the blanks: Predictor variable: Predictor variable in a regression in the independent…

Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

The correlation of two variables will be

Group of answer choices

a. Between -1 and +1, inclusive

b. Between 0 and +2, inclusive

c. Between 0 and +1, inclusive

d. Between minus infinity and plus infinity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If there is positive correlation between two sets of numbers, then _______. Group of answer choices r = 0 r < 0 r > 0 SSE=1 MSE = 1
Which of the following indicates that two variables tend to move in the same direction? a.negative covariance b.probability c.covariance d.positive covariance
Tendency of moving together of two variables is classified as A. correlation B. move tendency C. variables tendency D. double tendency
In a regression analysis, the variable that is being predicted is the a. Intervening variable O b. Dependent variable С. None O d. Independent variable
The regression line in a scatterplot is also known as a(n): A. R-squared line. B. high-low line. C. outcome variable. D. linear trendline.
Which of the following statements are true? A. The lower the M-squared the better. B. The higher the T-squared the better. C. The lower the Sharpe ratio the better. D. The higher the Jensen's alpha the better. E. The higher the Treynor ratio the better. Group of answer choices A, B, and D A, B, and C D and E B, C, and D B, D, and E
A variable which can assume any value within a given range is a. Discrete variable O b. Quantitative variable c. Continuous variable O d. Qualitative variable
Suppose that you are given a decision situation with three possible states of nature: s1, s2, and s3. The prior probabilities are P(s1) = 0.2, P(s2) = 0.5, and P(s3) = 0.3. With sample information I, P(I|s1) = 0.1, P(I|s2) = 0.05, and P(I|s3) = 0.2. Compute the revised (or posterior) probabilities: P(s1|I), P(s2|I), and P(s3|I).
In the linear regression equation y = a + bx, the letter b is best described as a (n):
Ch. 11. If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________. Group of answer choices positive covariance, covariance will be negative negative covariance, covariance will be zero positive covariance, standard deviation will be negative negative covariance, covariance will be positive
Briefly explain (in one or two sentences) what the meaning is of the calculated AS/SFR ask rate.
Please answer according to question. A and B using factore