Answer
The correlation only tells us about the strength of association between the variables, and not the size of one of the variables. Hence, we cannot say that one fund has a higher return than the other.
The Fidelity Technology fund has a closer relationship (r = 0.77) to returns from the stock market as a whole as compared to Fidelity Real Estate Fund (r - 0.37). Hence, the correct option is:
b.
Work Step by Step
The correlation only tells us about the strength of association between the variables, and not the size of one of the variables. Hence, we cannot say that one fund has a higher return than the other.
The Fidelity Technology fund has a closer relationship (r = 0.77) to returns from the stock market as a whole as compared to Fidelity Real Estate Fund (r - 0.37). Hence, the correct option is:
b.
