Stock M and Stock N Have Had the Following Returns

question 37

Multiple Choice

Stock M and Stock N have had the following returns for the past three years: 12 percent, -10 percent, 32 percent; and 15 percent, 6 percent, 24 percent, respectively. Calculate the covariance between the two securities. (Ignore the correction for the loss of a degree of freedom set out in the text.)

• A)-99
• B)126
• C)+250
• D)-250

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Definitions:

Oxygen Atom

The smallest unit of the element oxygen, consisting of 8 protons, 8 neutrons, and 8 electrons, essential for combustion and respiration.

Carbon Atoms

The basic building blocks of organic molecules, characterized by having four valence electrons, allowing them to form various structured networks and compounds.

Methoxyethane

An organic compound with the formula C3H8O; an ether that is used as a solvent.

Condensed Structural Formula

A method of displaying the molecular structure of a chemical compound, showing how its atoms are connected with minimal branching or levels of separation.