For a One Factor Model, the Slope for Security X

question 52

Multiple Choice

For a one factor model, the slope for Security X is 4, and the slope for Security Y is 5. The factor has a standard deviation of 3%. The covariance between Securities X and Y is

• A) 90.
• B) 180.
• C) 120.
• D) 60.

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Definitions:

Less Traditional

Deviating from established customs, beliefs, or practices, often by embracing newer or more progressive norms and values.

The Dream

According to Daniel Levinson and his colleagues, the drive to become someone, to leave one’s mark on history, which serves as a tentative blueprint for the young adult.

Boomerang Generation

Young adults who return to live with their parents after a period of independence, often due to economic factors.

Financial Reasons

Refers to the monetary factors or considerations that influence decisions, actions, or outcomes.