Given the Returns for Two Stocks with the Following Information

question 48

Multiple Choice

Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks. Assume the expected return is 10.8 percent for Stock 1 and 9.7 percent for Stock 2.
Prob
Stock 1
Stock 2
0) 4
0) 09
0) 11
0) 5
0) 11
0) 08
0) 1
0) 17
0) 13

• A) 0.000094
• B) 0.00051600
• C) 0.00032100
• D) 0.71750786

---

Definitions:

Magnesium Hydroxide

An inorganic compound used as an antacid and laxative.

Milk Of Magnesia

A liquid medication, primarily used as an antacid and laxative, containing magnesium hydroxide.

Acid Base

Refers to the mechanisms the body uses to maintain its pH within the narrow range necessary for various bodily functions to operate optimally.

Nucleoplasm

The semi-fluid substance inside the nucleus of a cell, containing the chromatin and the nucleolus.