Given the Following Forecasts, What Is the Covariance of the Returns

question 79

Multiple Choice

Given the following forecasts, what is the covariance of the returns on securities A and B?

• A)0.0209
• B)0.1447
• C)0.2348
• D)0.9871

---

Definitions:

Inventory

The total quantity of goods and materials that a business holds for the purpose of resale or production.

Source Of Supply

The origin from which goods, services, or materials are obtained, which can influence cost, quality, and delivery time.

Square-root Rule

A supply chain principle stating that the total safety stock investment is proportional to the square root of the number of locations.

Stocking Locations

Facilities or areas where inventory is kept before being distributed to fulfill orders, essential for managing supply chains efficiently.