The Standard Deviation of Return on Investment a Is

question 10

Multiple Choice

The standard deviation of return on investment A is .10 while the standard deviation of return on investment B is .04.If the correlation coefficient between the returns on A and B is -.50,the covariance of returns on A and B is _________.

• A) -.0447
• B) -.0020
• C) .0020
• D) .0447

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Definitions:

Balanced Scorecard

The Balanced Scorecard is a strategic planning and management system that uses financial and non-financial performance metrics to monitor and improve an organization’s performance.

Strategic Objectives

Long-term goals set by a business to guide its direction and decision-making processes, aiming to achieve competitive advantage.

Performance Measures

Metrics used to evaluate activities' success or productivity within an organization.

Lag Indicator

A metric that indicates the performance of a business or system after an event or activity has occurred, often financial in nature.