Which of the Following Equations Is Incorrect

question 52

Multiple Choice

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:

Annuity Payment

Regular periodic payments made to an annuitant or beneficiary, often fixed sums received from a retirement account or insurance policy.

Rate Of Interest

The percentage of a loan incurred as interest cost to the borrower, usually expressed as an annual rate.

Future Value

The value of an investment at a specific date in the future, considering compounding interest.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.