An ideal value-relevant attribute is one for which the correlation coefficient of the values of the attribute and the stock prices is

Question

Quizplus · Accepted Answer

An ideal value-relevant attribute is one that correlates strongly with stock prices. The correlation coefficient ranges from -1.0 to +1.0, where -1.0 indicates a perfectly negative correlation and +1.0 indicates a perfectly positive correlation. Therefore, the best choice is C since a correlation coefficient of +1.0 indicates a perfect positive correlation between the attribute and the stock prices, which is ideal for value relevance. A correlation coefficient of +1.0 indicates a perfect positive correlation, meaning that as the value of the attribute increases, so does the stock price. This makes it an ideal value-relevant attribute as it can provide valuable insights into the direction of the stock price movement.

An Ideal Value-Relevant Attribute Is One for Which the Correlation