The Covariance Between YOHO Stock and the S&P 500 Is

question 4

Multiple Choice

The covariance between YOHO stock and the S&P 500 is 0.05.The standard deviation of the stock market is 20%.What is the beta of YOHO?

• A)0.00
• B)1.00
• C)1.25
• D)1.42

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Definitions:

Isolated Conditions

Circumstances or areas that are solitary, remote, or separated from others.

Lateralization

Specialization of function in one hemisphere of the cerebral cortex or the other.

Cerebral Cortex

The outer layer of the brain, involved in high-order functions such as thought, language, and consciousness.

Temporalization

The process or act of placing events, experiences, or actions into a temporal context, understanding them in terms of time.