The Covariance Between the IS and DS Returns Is

question 21

Multiple Choice

The covariance between the IS and DS returns is:

• A) .00187.
• B) .00240.
• C) .00028.
• D) .000056.

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Definitions:

Regression Source Table

A table containing statistical information that summarizes the output of a regression analysis.

Model Significant

An indication that the model's predictions significantly differ from what would be expected by chance.

Correlation Coefficient

A numerical measure of the strength and direction of a linear relationship between two variables.

Linear Relationship

A direct correlation between two variables that can be represented with a straight line in a graph.