The Historical Returns for the Past Three Years for Stock

question 31

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio were Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. Calculate the observed covariance of returns between Stock B and the market portfolio. (Ignore the correction for the loss of a degree of freedom set out in the text.)

• A)16
• B)28
• C)36
• D)292

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations, or provide services that are either difficult to manage or outside the company's core expertise.

Social Support

The assistance and comfort received from friends, family, and acquaintances, providing a buffer against adverse situations.

Stress Perceptions

The individual interpretation and response to stressors, influencing how stress affects one’s health and wellbeing.

Stressor

Any event, situation, or stimulus that causes stress or anxiety.