The Covariance Between the Returns on Two Stocks Equals the Correlation

question 41

True/False

The covariance between the returns on two stocks equals the correlation coefficient multiplied by the standard deviations of the two stocks.

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Definitions:

Synaptic Cleft

The microscopic gap between neurons across which neurotransmitters are released, facilitating communication between cells.

Neurotransmitter Effects

The impacts or actions exerted by neurotransmitters, which are chemicals responsible for transmitting signals across a chemical synapse between neurons or between neurons and muscles.

Receptors

Proteins located on the surface of or within cells, which bind to specific molecules, triggering a physiological response.

Postsynaptic Cell

A neuron or muscle cell that receives signals from a presynaptic neuron at a synapse.