Use the Table for the Question(s) Below

question 68

Multiple Choice

Use the table for the question(s) below.
Consider the following returns:

-The covariance between Lowes' and Home Depot's returns is closest to:

• A) 0.10
• B) 0.29
• C) 0.12
• D) 0.69

---

Definitions:

Ordinary Simple Interest

Interest calculated on the principal amount only, not on accrued interest over time.

360-Day Year

A simplified accounting method where each month is considered to have 30 days, resulting in a year total of 360 days, used in financial calculations.

Loan Period

The duration over which a borrower agrees to pay back a loan to the lender, typically expressed in months or years.

Ordinary Simple Interest

Interest calculated on the principal amount only, without compounding, usually over a period of a year or less.