The Covariance of Two Stocks Was Calculated at -

question 86

Multiple Choice

The covariance of two stocks was calculated at -.01733.If the standard deviation of the first stock is .106 and .164 for the second, determine the correlation.

• A)-.997
• B)-.887
• C)-.687
• D)-.587

---

Definitions:

Statistical Significance

A measure that indicates whether the results of an experiment or study are likely not due to chance, but to a specific factor or intervention.

Chance Variations

Random changes or differences that occur naturally within processes, which can affect outcomes unpredictably.

Causally Related

A connection between two events where one directly affects the outcome or occurrence of the other.

Retested

The process of administering a test or assessment again to the same subject at a different time to evaluate changes, consistency, or reliability.