If the Standard Deviation of Stock a Is 10% and the Standard

question 18

Multiple Choice

If the standard deviation of stock A is 10% and the standard deviation of stock B is 15% and the correlation coefficient between the stocks is 0.5,what is the covariance between stock A and stock B?

• A)0.05
• B)0.0005
• C)0.015
• D)0.0075

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Definitions:

Human Development

The multidisciplinary study of how people change and grow over the course of their life, encompassing physical, cognitive, and social changes.

Nature

Refers to the innate traits, qualities, and genetics that determine who we are, often contrasted with nurture, the influence of the environment and experience.

Nurture

The influence of environmental factors on an individual's development, including upbringing, education, and social interactions.

Ebbinghaus

A psychologist known for his work on memory and the forgetting curve, demonstrating how memory declines over time.