1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Deffense [45]
3 years ago
11

(5). The variance of Stock A is .005, the variance of the market is .008 and the covariance between the two is .0026. What is th

e correlation coefficient
Business
1 answer:
Nadya [2.5K]3 years ago
5 0

Answer:

0.4110

Explanation:

The formula and computation of the correlation coefficient is shown below:

Correlation co-efficient = Covariance ÷ (Standard deviation of market × Standard deviation of Stock A)

where,

Covariance between the two = 0.0026

Variance of the stock A = 0.005

And, the variance of the market is 0.008

Now placing these values to the above formula

So, the correlation coefficient is

= 0.0026 ÷ (0.008 × 0.005)^0.50

= 0.0026 ÷ 0.006324555

= 0.411096096

= 0.4110

Hence, the correlation coefficient is 0.4110

You might be interested in
As part of the initial screening for possible employment, a nuclear power company administers a psychological test that yields s
Law Incorporation [45]

Answer: It is called Minnesota Multiphasic Personality Inventory (MMPI)

Explanation:

The Minnesota Multiphasic  Personality Inventory is a clinical assessment tool widely accepted to measure and diagnose mental health disorders.

6 0
3 years ago
On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed
garik1379 [7]

Answer:

None of the above options are correct

Depletion amount in 2019 = $52.480

Explanation:

The Cost of Quarry (Depletion Base ) = $164000

Estimated Salable Rock (Units Extracted) = 20000 tons

Depletion Rate = Depletion Base /Units Extracted

Depletion Rate for 2018 = 164000/ 20000 = $8.2/ton

Units Extracted in 2018 = 4000 tons

Depletion amount in 2018 = Depletion Rate for 2018 *Units Extracted in 2018

Depletion amount in 2018 = $(8.2*4000) = $32800

In 2019

Depletion Base in 2019 = The Cost of Quarry - Depletion amount in 2018 = 164000-32800 = $131200

Estimated Salable Rock in 2019 (Units Extracted) = 20000 tons

Depletion Rate for 2019 = 131200/ 20000 = $6.56/ton

Units Extracted in 2019 = 8000 tons

Depletion amount in 2019 = $(6.56*8000) = $52480

4 0
3 years ago
Having a low credit score can make it more difficult to: a obtain a car loan b open a new credit card c secure an apartment leas
lys-0071 [83]
I think the correct answer from the choices listed above is option D. Having a low credit score can make it more difficult to obtain a car loan, open a new credit card and secure an apartment lease. <span>A </span>credit score<span> is a numerical expression based on a level analysis of a person's </span>credit<span> files, to represent the creditworthiness of the person. </span><span>Hope this answers the question. Have a nice day. </span>
7 0
3 years ago
Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The co
zavuch27 [327]

Answer:

$60,000 income tax benefit

Explanation:

Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.

$200,000 x 30% = $60,000 income tax benefit

6 0
3 years ago
​ Jim saw a decrease in the quantity demanded for his firm’s product from 8000 to 6000 units a week when he raised the price of
Delicious77 [7]

Answer:

The demand for Jim’s product is elastic

Explanation:

In this question, we are to calculate the price elasticity of demand for the product.

We proceed as follows;

The formula for calculating elasticity of demand is

e = [(Q2 - Q1) / {(Q1 + Q2) / 2}] / [(P2 - P1) / {(P1 + P2) / 2}]

Here, Q2 = 6000

Q1 = 8000

P2 = $250

P1 = $200

e = [(6000 - 8000) / {(8000 + 6000) / 2}] / [($250 - $200) / {($200 + $250) / 2}]

e = [(- 2000) / 7000] / [(50 / 225]

e = - 1.3

That means absolute value of e is 1.3.

So, as the absolute value of e is more than 1 (i.e., 1.3), that means the demand for the product is elastic.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $20,000 in Ma
    9·2 answers
  • An economic model is:
    6·2 answers
  • The Covington Engine Company is considering opening a new plant facility to build truck engines. As part of a detailed analysis
    7·1 answer
  • In 2019, Sayer, who is single, have an outright gift of $53,000 to a friend, Johnson, who needed the money to pay medical expens
    11·1 answer
  • One disadvantage of a partnership is lower monitoring costs. limited liability. difficulty raising funds. it permits greater spe
    10·1 answer
  • An example of capital is?
    15·1 answer
  • Service providers must offer cues to help their customers experience and perceive their service more positively and reinforce th
    11·1 answer
  • Christian is 33 years old, has been renting for the past five years, and is now thinking about purchasing a home by applying for
    13·1 answer
  • Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, sh
    6·1 answer
  • is an unlevered firm with a total market value of $3,900,000 with 60,000 shares of stock outstanding. The firm has expected EBIT
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!