The Variance of Stock a Is

question 43

Multiple Choice

The variance of Stock A is .015376,the variance of Stock B is .028561,and the covariance between the two is .0024.What is the correlation coefficient?

• A).9284
• B).1542
• C).5465
• D).1145
• E).0910

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Definitions:

Profit Sharing

A compensation strategy where employees receive additional pay based on the company's profits.

Profit-Sharing Plans

Programs that distribute a portion of an organization’s profits to its employees, aligning employees' interests with the financial success of the company.

Free Rider

An individual who benefits from resources, goods, or services without paying for them, often discussed in the context of public goods or collective efforts.

Long-Term Incentives

Compensation rewards designed to motivate and retain employees over an extended period, often in the form of stock options, equity, or performance plans.