Correlation is a statistical measure of the relationship between a series of numbers representing data. Which of the following statements about correlation is/are correct?
I. Perfectly negatively correlated describes two negatively correlated stocks that have a correlation coefficient of -1.
II. Perfectly positively correlated describes two positively correlated stocks that have a correlation coefficient of 0.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

I is correct as a correlation of -1 indicates a perfectly negative correlation where one variable goes down as the other goes up. II is incorrect as a correlation coefficient of 0 indicates no correlation between the two variables, not perfect positive correlation.

Correlation Is a Statistical Measure of the Relationship Between a Series