Idaho Slopes (IS) and Dakota Steppes (DS) Are Both Seasonal

Multiple Choice

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: The covariance between the IS and DS returns is:

A) .00187.
B) .00240.
C) .00028.
D) .000056.