The Covariance Between Amazon Stock and the S&P 500 Is

question 50

Multiple Choice

The covariance between Amazon stock and the S&P 500 is 0.05. The standard deviation of the stock market is 20%. What is the beta of Amazon?

• A)0.00
• B)1.00
• C)1.25
• D)1.42

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Definitions:

Supplier Partnering

A close relationship between a buyer and supplier aimed at long-term mutual benefits and performance improvements.

Nonfinancial Information

Data that doesn't have a monetary value but is relevant for understanding a company's performance or condition, such as employee satisfaction or customer loyalty.

Variance Analysis

The process of investigating the differences between actual financial performance and budgeted expectations, identifying causes of variance.

Financial Accounting

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.