- CFA Exams
- CFA Exam: Level II 2021
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 1. Linear regression

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**CFA Practice Question**

For a data collection of x and y scores, if a straight line with a negative slope fits the data perfectly then

B. the correlation coefficient is -1

C. the y-intercept is (0, -1)

A. the slope value is 0.5

B. the correlation coefficient is -1

C. the y-intercept is (0, -1)

Correct Answer: B

A correlation coefficient of -1 indicates that the x-y data pairs are such that a straight line with a negative slope fits the data perfectly.

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