Uptown Markets Stock Has a Standard Deviation of 16

question 74

Multiple Choice

Uptown Markets stock has a standard deviation of 16.8 percent and a covariance with the market of 0.02.The market has a standard deviation of 13.7 percent.What is the correlation of this stock with the market?

• A) 0.74
• B) 0.78
• C) 0.87
• D) 0.89
• E) 0.91

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Definitions:

Federal Statute

A federal statute is a law enacted by the legislative branch of the federal government of the United States.

Contributory Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of the injury.

Last Clear Opportunity

A legal principle in some tort law jurisdictions that allows the defendant to be exempted from liability if it can be shown they had no final clear chance to avoid the accident.

Comparative Negligence

A principle of tort law that reduces the amount of damages a plaintiff can recover in a negligence-based lawsuit, proportionate to the plaintiff's degree of fault.