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

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Definitions:

Cash Receipts Journal

An accounting ledger that tracks all cash inflows to a business, documenting sources of revenue or income.

Subsidiary Ledger Accounts

Detailed accounts contained within a subsidiary ledger, tracking individual transactions related to a specific customer, supplier, or type of item.

Accounts Receivable

Money owed by customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Accounts payable are liabilities representing the amount a business owes to its suppliers or creditors for goods and services received but not yet paid for.