The Correlation Between Stocks a and B Is Computed as The

question 19

Multiple Choice

The correlation between Stocks A and B is computed as the:

• A)covariance between A and B divided by the standard deviation of A times the standard deviation of B.
• B)standard deviation of A divided by the standard deviation of B.
• C)standard deviation of AB divided by the covariance between A and B.
• D)variance of A plus the variance of B divided by the covariance of AB.
• E)square root of the covariance of AB.

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Definitions:

GASB Concepts Statement No. 1

A framework provided by the Governmental Accounting Standards Board outlining objectives and concepts for general purpose external financial reporting by state and local governments.

Fund Balance Categories

Classification of fund balances in governmental accounting that indicates the extent to which spendable resources are subject to external restrictions or are designated for specific purposes.

GASB

The Governmental Accounting Standards Board, which establishes accounting standards for state and local governments in the United States.

Monetary Transfers

Financial transactions that involve the movement of money from one party to another, which can be domestic or international in nature.