The correlation between two shares:
A)can take on positive values.
B)can take on negative values.
C)cannot be greater than 1.
D)cannot be less than −1.
E)All of the above.

Question

Quizplus · Accepted Answer

A) The correlation can take on positive values, indicating a positive relationship between the two shares.
B) The correlation can take on negative values, indicating a negative relationship between the two shares.
C) The correlation coefficient ranges from -1 to 1, and cannot exceed those values.
D) The correlation coefficient can be negative, indicating a negative relationship between the two shares, and can therefore take on values less than -1. 
Therefore, all of the above statements are true.

The Correlation Between Two Shares