Which of the Following Equations Is INCORRECT

question 10

Multiple Choice

Which of the following equations is INCORRECT?

• A)Cov(Ri,Rj)= Σ(Ri - Ri)(Rj - Rj)
• B)Var(Rp)= x12Var(R1)+ x22Var(R2)+ 2X1X2Cov(R1,R2)
• C)Corr(Ri,Rj)=
• D)Cov(Ri,Rj)= E[(Ri - E[Ri])(Rj - E[Rj])]

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Definitions:

Proportionate Ownership

The percentage of ownership that an investor holds in a company, typically represented in terms of share ownership.

Preemptive Rights

The rights that allow existing shareholders to purchase additional shares before new shareholders can buy them, in order to maintain their proportionate ownership in the company.

Cumulative

Cumulative refers to the total amount accumulated over a series of periods, often used in the context of dividends or other accumulative data.

Undeclared Dividends

Dividends that have been earned by shareholders but have not yet been declared by the company's board of directors.