What Is the Covariance of Security a to the Market

question 65

Multiple Choice

What is the covariance of security A to the market given the following information?

• A) 75.0
• B) 80.1
• C) 83.8
• D) 87.0
• E) 91.1

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Definitions:

Treasury Bill

A Treasury Bill (T-Bill) is a short-term government debt obligation backed by the Treasury Department with a maturity of one year or less.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Effective Annual Yield

The return on an investment expressed as an annual rate, taking into account the effect of compounding interest.

Selling Today

The act of disposing of an asset or security in the current market with the intention of realizing its current value.