The Standard Deviation of Return on Investment a Is 10

question 78

Multiple Choice

The standard deviation of return on investment A is 10%, while the standard deviation of return on investment B is 5%. If the covariance of returns on A and B is .0030, the correlation coefficient between the returns on A and B is ________.

• A) .12
• B) .36
• C) .60
• D) .77

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Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania) and lows (depression).

Cognitive Triad

The three forms of negative thinking that theorist Aaron Beck theorizes lead people to feel depressed. The triad consists of a negative view of one’s experiences, oneself, and the future.

Aaron Beck

A psychiatrist and psychotherapist known for developing Cognitive Therapy, particularly its application for depression.

Depressed Person

A term for someone experiencing depression, a mental health condition characterized by persistent feelings of sadness and loss of interest in activities.