Statements regarding the correlation coefficient

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1. Which of the following statements regarding the correlation coefficient is not true?

a. It is a statistical measure.

b. It measures the relationship between two securities returns.

c. It determines the causes of the relationship between two securities returns.

d. It has a value which is anywhere between positive and negative one.

2. TDH has a price cash flow ratio of 6.8 and cash flow per share of $13.64. if the cash flow per share is expected to grow at 9.7%, what will be its stock price next year?

a. 126.31

b. 127.51

c. 122.14

d. 101.75

3. the duration of a bond tells us:

a. how long it will take the bondholder to get the face value of the bond.

b. how soon is the corporation going to call the bond.

c. how sensitive is the bond’s price to changes in yield to maturity.

d. none of the above are true.

Reference no: EM131947245

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