FINA5320 EXAM 3 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

FINA5320 EXAM 3 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Which one of these measure the interrelationship between two securities? - Answer -Covariance Which one of these measures the squared deviations of actual returns from expected returns? - Answer -Variance The return on one stock will exceed the stock's average return when the second stock has a return that is less than its average. - Answer -A negative covariance between the returns of Stock A and Stock B indicates that:Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: covarianceAB divided the product of the standard deviations of A and B - Answer -The correlation between stocks A and B is equal to the: a strong positive correlation - Answer -You plotted the monthly rate of return for two securities against time for the past 48 months. If the pattern of the movements of these two sets of returns rose and fell together the majority, but not all, of the time, then the securities have Is limited by the returns on the individual securities within the portfolio. - Answer -The expected return on a p