Horse Stock Returns Have Exhibited a Standard Deviation of 0

question 60

Multiple Choice

Horse Stock returns have exhibited a standard deviation of 0.57, whereas Mod T Stock returns have a standard deviation of 0.63. The correlation coefficient between the returns is 0.078042. What is the covariance of the returns? Round your answer to six decimal places.

• A) 0.028025
• B) 0.217327
• C) 0.359100
• D) 0.993094

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Definitions:

Plasma Membrane

A semi-permeable membrane surrounding a cell, responsible for controlling the passage of substances in and out.

Phospholipids

A class of lipids that are a major component of all cell membranes and can form lipid bilayers because of their amphiphilic characteristic.

Plasma Membrane

The organic membrane distinguishing the inner part of all cells from the outer environment, managing the flow of substances to and from the cells.

Cholesterol

A lipid molecule essential for the structure of cell membranes and precursor of steroid hormones, vitamin D, and bile acids.