The Covariance of Two Stocks Was Calculated at -

question 114

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 covariance.

• A)-.997
• B)-.887
• C)-.687
• D)-.587

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Definitions:

Property Rights

Legal parameters that define the ownership and use of property, including land, buildings, and intellectual property.

Allocate Resources

The process of distributing available resources, whether material, financial, or human, among competing demands and uses in an efficient manner.

Willingness to Pay

The maximum amount a consumer is ready to spend for a good or service.

Surplus

The situation where the quantity supplied of a product exceeds the quantity demanded at a given price.