Which of the following statements about the correlation coefficient is correct?

		The correlation coefficient is always equal to zero.
		The correlation coefficient measure hedging activity.
		The correlation coefficient measures risk.
		The correlation coefficient measures how two variables move relative to each other.
		The correlation coefficient is a number between -1 and +1.

What is Risk Charge?

		Risk Charge represents how much an insurance company should charge for people not paying their insurance premium.
		Risk Charge represents how much an insurance company should charge for uncertainty.
		Risk Charge represents the standard deviation of the variance.
		Risk Charge represents the margin of error arising from estimating an unknown variable.
		Risk charge is the cost to create risk pools.