Which of the Following Is a Definition of the Covariance

question 8

Multiple Choice

Which of the following is a definition of the covariance between X and Y?

• A) Correlation between X and Y times variance of X times variance of Y
• B) Variance of X times the variance of Y
• C) Correlation between X and Y divided by the product of the standard deviation of X and the standard deviation of Y
• D) Correlation between X and Y times standard deviation of X times standard deviation of Y

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.

Inventory Turnover

A measure of how often a company sells and replaces its stock of goods within a certain period.

Average Sale Period

The average amount of time it takes for a company to convert its inventory into sales.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the goods, and receive cash from sales.