Use the Table for the Question(s)below

question 70

Multiple Choice

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

• A)0.05.
• B)0.06.
• C)0.10.
• D)0.71.

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Definitions:

Variable Factor

In economics, an input in the production process that can be adjusted in the short run to change the quantity of output.

Fixed Factors

Inputs in the production process that cannot be easily increased or decreased in a short period of time.

Constant Returns To Scale

a situation in production where increasing all inputs by the same percentage results in output increasing by that same percentage.

Long-run Profits

The potential earnings of a business over a period long enough for all inputs to be adjusted, considering the firm's ability to enter or exit markets.