If the Covariance Between Stock a and Stock B Is

question 51

Multiple Choice

If the covariance between stock A and stock B is 100, the standard deviation of stock A is
10% and that of stock B is 20%, calculate the correlation coefficient between the two securities.

• A) -0.5
• B) +1.0
• C) +0.5
• D) None of the above

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Definitions:

Volcanic Domes

Lava domes are rounded, steep-sided mounds formed from the slow extrusion of viscous lava from a volcano.

Magma Chambers

Large pools of molten rock located beneath the Earth's surface, serving as the source for volcanic eruptions.

Volcanic Domes

Rounded, bulbous formations created by the slow extrusion of very viscous lava from a volcano, which hardens close to the vent.

Gas Pressure

The force exerted by gas molecules colliding with the surfaces of objects in a container, influenced by the temperature and volume of the gas.