Use the Table for the Question(s)below

question 133

Multiple Choice

Use the table for the question(s) below.
Consider the following returns:
-The covariance between Stock X's and Stock Y's returns is closest to:

• A)0.10.
• B)0.29.
• C)0.12.
• D)0.69.

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Accrual

An accounting principle that recognizes revenues and expenses when they are incurred, regardless of when cash transactions occur.

Adjusting Journal Entries

Entries made at the end of an accounting period to update balances of revenues and expenses to reflect the correct amounts earned or incurred during a period.

Accrual

A financial recording approach that logs income and expenditures at the time they occur, irrespective of the actual cash transaction timing.