What Is the Covariance of Security a to the Market $\begin{array}{ccc}\text { Year } & \text { Security A Returna } & \text { Market Returns } \\1 & 18 \% & 10\% \\2 & -6 & -2\\3&9&7\end{array}$

question 72

Multiple Choice

What is the covariance of Security A to the market given the following information?
$\begin{array}{ccc}\text { Year } & \text { Security A Returna } & \text { Market Returns } \\1 & 18 \% & 10\% \\2 & -6 & -2\\3&9&7\end{array}$

• A)75.0
• B)80.1
• C)83.8
• D)87.0
• E)91.1

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Officer

An individual holding a position of authority or command, especially within a governmental, military, or corporate structure, responsible for enforcing laws or policies.

Shareholders

Investors in a corporation, who own the corporation.

Dividends

Payments made by a corporation to its shareholders, usually derived from profits.