Positive Values of Covariance Indicate

question 35

Multiple Choice

Positive values of covariance indicate

• A) a positive variance of the x values.
• B) a positive variance of the y values.
• C) the standard deviation is positive.
• D) positive relation between the independent and the dependent variables.

---

Definitions:

Capital Structure

Capital structure describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which collectively finance the company's operations and growth.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees for underwriting, legal counsel, and registration.

Pre-tax Cost

The expense associated with an investment or action before the effects of taxes are taken into account.

Pay Interest

The act of compensating a lender for the use of borrowed money, usually determined as a percentage of the principal loan amount.