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Security X Has Expected Return of 7% and Standard Deviation

Question 49

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
E) −0.1512

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