The process of explaining the meaning, significance, and relationship between two financial factors is called

Summarization
Analysis
Interpretation
None of the above

The correct answer is C. Interpretation.

Summarization is the process of reducing the length of a text while retaining its main points. Analysis is the process of breaking down a text into its component parts and examining them individually. Interpretation is the process of understanding the meaning of a text and its significance.

In the context of financial factors, interpretation is the process of understanding the meaning of those factors and their relationship to each other. For example, an analyst might interpret the relationship between a company’s stock price and its earnings per share to determine whether the stock is overvalued or undervalued.

The other options are incorrect because they do not accurately describe the process of interpretation. Summarization is not the same as interpretation, because summarization does not involve understanding the meaning of a text. Analysis is not the same as interpretation, because analysis does not involve understanding the significance of a text. None of the above is not an option, because interpretation is the correct answer.

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