Determine the Covariance, Give That a Company Has a Beta

question 106

Multiple Choice

Determine the covariance, give that a company has a Beta of 1.6 and a variance of 0.6.

• A)0.96
• B)1.16
• C)1.36
• D)1.56

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Definitions:

Economic State

The current condition of an economy, including factors such as growth rates, unemployment levels, inflation rates, and the overall health of the economic system.

Upward Mobility

The ability or opportunity for individuals or groups to improve their social or economic status.

Most Stratified

Describes societies, systems, or social structures characterized by significant levels of inequality and division into different social strata or classes.

Industrialized Nations

Countries characterized by a high level of industrial development, with a significant portion of the economy based on manufacturing and services.