Covariances Between Security Returns Tend to Be

question 4

Multiple Choice

Covariances between security returns tend to be

• A)positive because of SEC regulations.
• B)positive because of Exchange regulations.
• C)positive because of economic forces that affect many firms.
• D)negative because of SEC regulations.

---

Definitions:

Recessive

Describes a gene that is expressed in offspring only when it is inherited from both parents, as opposed to a dominant gene.

Epigenetics

The study of heritable changes in gene expression that occur without changes to the DNA sequence itself.

Genotype

The genetic makeup of an individual organism, encompassing all of its genes.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.