Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share,200 shares of Lowes (LOW) at $30 per share,and 100 shares of Ball Corporation (BLL) at $40 per share.
-Which of the following equations is INCORRECT?

• A)Cov(R_i,R_j)= Σ(R_i - R_i)(R_j - R_j)
• B)Var(R_p)= x₁^2Var(R₁)+ x₂^2Var(R₂)+ 2X₁X₂Cov(R₁,R₂)
• C)Corr(R_i,R_j)=
• D)Cov(R_i,R_j)= E[(R_i - E[R_i])(R_j - E[R_j])]

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Definitions:

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and retention.

Minimum Required Rate Of Return

The lowest acceptable rate of return on an investment, considering its risk and the opportunity cost of forgoing other investments.

Average Operating Assets

The average value of the assets that are used in the normal operations of a business, calculated over a specific period of time.

Net Operating Income

The profit generated from a company's everyday operational activities, excluding taxes and interest.