The Correlation Between Two Returns

question 10

Multiple Choice

The correlation between two returns:

• A)is the covariance between the two returns divided by the product of their standard deviations.
• B)is the standard deviations of the two returns divided by the covariance between them.
• C)is the standard deviations of the two returns multiplied by the covariance between them.
• D)is the covariance between the two returns divided by the product of their variances.

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Definitions:

Daily Hassles

Regular minor irritations or annoyances that people encounter in their everyday lives, which can accumulate and impact mental health.

Environmental Hassles

Daily, minor annoyances or problems that individuals encounter in their environment, which can accumulate and contribute to larger stress levels.

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of the stages of alarm, resistance, and exhaustion.

Resistance Stage

The second phase in the general adaptation syndrome, characterized by the body's adaptation to a stressor and continuation of the fight or flight response maintenance.