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9. A range of problems can impact capital markets expectations setting including data measurement errors and biases including Misinterpretation of Correlation. When a variable is

9. A range of problems can impact capital markets expectations setting including data measurement errors and biases including Misinterpretation of Correlation. When a variable is found to be significantly correlated with another variable there are at least 4 explanations. Which of the following is NOT an explanation:

A predicts B

A third variable, C, predicts both A and B

The relationship is spurious

None of the above

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