If the Correlation Coefficient Between the Returns on Stock C

question 62

Multiple Choice

If the correlation coefficient between the returns on stock C and stock D is +1.0, the standard deviation of return for stock C is 15 percent, and that for stock D is 30 percent, calculate the covariance between stock C and stock D.

• A)+45
• B)-450
• C)+450
• D)-45

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Definitions:

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about personal value and competence.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires, reflecting an understanding of oneself.

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for admiration, and a lack of empathy for others.

Mirror

An object with a reflective surface that returns an image of whatever stands in front of it, often used metaphorically to reflect ideas or qualities.