Multiple Choice
Florida Company (FC) and Minnesota Company (MC) are both service companies.Their stock returns for the past three years were: FC: -5%,15%,20%; MC: 8%,8%,20%.
Calculate the covariance between the returns of FC and MC.
A) 60
B) 80
C) 40
D) 100
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Briefly explain the Fama-French three-factor model.
Q40: Most investors dislike uncertainty.
Q53: Where would underpriced and overpriced securities plot
Q66: Assume the following data for a stock:
Q67: Florida Company (FC)and Minnesota Company (MC)are both
Q69: If a stock were overpriced,it would plot:<br>A)above
Q72: Suppose you invest equal amounts in a
Q73: The distribution of daily returns for stocks
Q76: Normal and lognormal distributions are completely specified
Q85: The security market line (SML)is the graph