What Does the Covariance Measure

question 104

Multiple Choice

What does the covariance measure?

• A) The direction of a linear relationship between two variables.
• B) The direction of a curvilinear relationship between two variables.
• C) The direction of a linear relationship between two or more variables.
• D) The direction of a curvilinear relationship between two or more variables.

---

Definitions:

Common Shareholders

Individuals or entities that own common stock in a corporation, thus holding a share of the ownership and typically having voting rights.

Public Company

A company whose shares are traded freely on a stock exchange, subject to regulatory and reporting requirements.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.