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Choose ALL correct statements about the correlation coefficient. Group of answer choices It measures the extent...

Choose ALL correct statements about the correlation coefficient.

Group of answer choices

It measures the extent to which two random variables move together.

The values range between -∞ to +∞ .

A value of +1 implies that the returns for the two stocks move together in a completely linear manner.

A value of 0 implies that the returns move in a completely opposite direction.

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Answer #1

Solution.>

Option A is correct. The correlation coefficient measures the extent to which two random variables move together.

Option B is not correct. The values range between -1 to +1.

Option C is correct. A value of +1 implies that the returns for the two stocks move together in a completely linear manner.

Option D is not correct. A value of -1 implies that the returns move in a completely opposite direction.

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