If the Covariance Between Stock a and Stock B Is

question 84

Multiple Choice

If the covariance between stock A and stock B is 100, the standard deviation of stock A is 10 percent and that of stock B is 20 percent, calculate the correlation coefficient between the two securities.

• A)-0.5
• B)+1.0
• C)+0.5
• D)0.0

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Definitions:

Communication

The process of exchanging information and ideas between individuals or entities, often involving speaking, writing, or using other mediums.

Legitimate Power

The authority derived from a formal position or role in an organization, which allows someone to influence others.

Supplier

A supplier is an entity that provides goods or services to another organization, playing a crucial role in the supply chain by influencing product quality, costing, and availability.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.