What is the correlation coefficient between the following two investments?
Year Return A Return B
1 -4% -3%
2 2% 5%
3 -3% -6%
4 1% 2%
5 4% 8%
A) Positive
B) Negative
C) Zero
D) Unable to determine without knowing the covariance
A
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Decreases in the standard deviation of demand reduce the amount of safety stock that should be held
Indicate whether the statement is true or false.
At the start of football season, the ticket office gets busy the day before the first game. Customers arrive at the rate of four every ten minutes. A ticket seller can service a customer in four minutes
Traditionally, there are two ticket sellers working. The university is considering an automated ticket machine similar to the airlines' e-ticket system. The automated ticket machine can service a customer in 2 minutes. (a) What is the average length of the queue for the in-person model? (b) What is the average length of the queue for the automated system model? (c) What is the average time in the system for the in-person model? (d) What is the average time in the system for the automated system model? (e) Assume the ticket sellers earn $8 per hour and the machine costs $20 per hour (amortized over 5 years). The wait time is only $4 per hour because students are patient. What is the total cost of each model?