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Security X Has Expected Return of 7% and Standard Deviation

Question 24

Multiple Choice

Security X has expected return of 7% and standard deviation of 14%.Security Y has expected return of 11% and standard deviation of 22%.If the two securities have a correlation coefficient of -0.45, what is their covariance?


A) 0.0388
B) -0.0108
C) 0.0184
D) -0.0139

Correct Answer:

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