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Security M Has Expected Return of 17% and Standard Deviation

Question 35

Multiple Choice

Security M has expected return of 17% and standard deviation of 28%. Security S has expected return of 13% and standard deviation of 15%. If the two securities have a correlation coefficient of 0.78, what is their covariance?


A) 0.018
B) 0.029
C) 0.033
D) 0.045
E) 0.054

Correct Answer:

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