Stock M and Stock N Have Had the Following Returns

question 36

Multiple Choice

Stock M and Stock N have had the following returns for the past three years of -12%,
10%, 32%; and 15%, 6%, 24% respectively. Calculate the covariance between the two securities.

• A) -99
• B) +99
• C) +250
• D) None of the above

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Definitions:

Universal Grammar Theory

A theory proposed by Noam Chomsky that suggests the ability to acquire language is innate to humans and that all languages share a common underlying structure.

Evidence

Information or data that are systematically collected to support or refute a particular claim or hypothesis.

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A medical device that bypasses damaged structures in the inner ear and directly stimulates the auditory nerve to provide a sense of sound to a person who is profoundly deaf or severely hard of hearing.

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