The Covariance Between YOHO Stock and the S&P 500 Is

question 63

Multiple Choice

The covariance between YOHO stock and the S&P 500 is .05. The standard deviation of the stock market is 20%. What is the beta of YOHO?

• A) 0.00
• B) 1.00
• C) 1.25
• D) 1.42

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Definitions:

Effectors

Organs or cells that act in response to a stimulus, often referring to muscles or glands that carry out the body's responses to stimuli.

Afferent Neurons

Nerves that carry messages inward toward the central nervous system.

Efferent Neurons

Nerves that carry messages outward from the central nervous system.

Parasympathetic Neurons

Nerve cells that are part of the parasympathetic nervous system, which helps in conserving energy and slowing down the heart rate.