Which of the Following Is the Equation Used for Computing $\frac{\operatorname{cov}(X, Y)}{s_{X}{ }_{y} y}$

question 18

Multiple Choice

Which of the following is the equation used for computing the sample correlation coefficient?

• A)rₓᵧ = cov(X,Y) (sₓsᵧ)
• B)rₓᵧ = \(\frac{\operatorname{cov}(X, Y)}{s_{X}{ }_{y} y}\)
• C)rₓᵧ = \(\frac{\left(x_{i}-\bar{x}\right)}{s_{x} s_{y}}\)
• D)rₓᵧ = \(\sqrt{\frac{\left(x_{i}-\bar{x}\right)}{s_{x}-s_{y}}}\)

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Definitions:

Expected Market Rate

The anticipated return on investment in the financial markets based on historical data and market analysis.

Expected Rate of Return

The weighted average of all possible returns for an investment, incorporating all risks of its potential outcomes and their probabilities.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and telecommunications equipment.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss.