-What Is the Covariance Between Stock X and the Market

question 91

Multiple Choice

$\begin{array}{c}\begin{array}{c}\underline{\text { Year }} \\1 \\2 \\3 \\4\end{array}\begin{array}{c}\underline{\text {Stock X}}\\-27 \% \\6 \% \\34 \%\\11\%\end{array}\begin{array}{c}\underline{\text { Market } }\\-7 \% \\11 \% \\18 \% \\10\%\end{array}\end{array}$

-What is the covariance between Stock X and the market?

• A) 0.0125
• B) 0.0262
• C) 0.0468
• D) 0.0429
• E) 0.0316

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Definitions:

Saturated Fats

Fats containing a high proportion of fatty acid molecules without double bonds, considered less healthy in diets.

Calcium

A mineral essential for human life, involved in bone formation, muscle contraction, nerve function, and blood clotting.

Healthy Bones

Bones that are strong, dense, and capable of supporting the body and withstanding physical stress.

Blood Clotting

The process by which blood changes from a liquid to a gel, forming a clot to prevent excessive bleeding when the vascular system is injured.