Between 1980 and 2000, the Standard Deviation of the Returns

question 2

Multiple Choice

Between 1980 and 2000, the standard deviation of the returns for the NIKKEI and the DJIA indexes were 0.08 and 0.10, respectively, and the covariance of these index returns was 0.0007. What was the correlation coefficient between the two market indicators?

• A) .0906
• B) .0985
• C) .0796
• D) .0875
• E) .0654

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Definitions:

Linear Programming

A mathematical technique used for optimizing resource allocation decisions subject to certain constraints.

Markov Analysis

A mathematical technique used to predict the future behavior of a system based on its current state and known transition probabilities.

HR Supply Forecasting

The process of predicting the future availability of human resources in the organization in terms of quantity and quality.

HR Supply

The available pool of candidates that an organization's human resources department can draw upon to fill positions.