Multiple Choice
Security X has expected return of 9% and standard deviation of 18%. Security Y has expected return of 12% and standard deviation of 21%. If the two securities have a correlation coefficient of −0.4, what is their covariance?
A) 0.0388
B) 0.0706
C) 0.0184
D) −0.0133
E) −0.0151
Correct Answer:
Verified
Correct Answer:
Verified
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