Two Securities Have a Covariance of 0

question 21

Multiple Choice

Two securities have a covariance of 0.076. If their respective standard deviations are 13% and 22%, what is their correlation coefficient?

• A) 0.22
• B) 0.38
• C) 0.58
• D) 0.72
• E) 0.95

Identify the indicators of advertising effectiveness.

Comprehend the roles and enforcement mechanisms of regulatory agencies in advertising.

Identify the importance of message consistency across different advertising media.

Acknowledge the role of sales promotion in marketing strategy.

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Definitions:

Cash Dividend Payment

A distribution of a company's earnings declared by the board of directors to its shareholders in the form of cash.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.