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    Exam 7: Efficient Diversification
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    Two Securities Have a Covariance of 0
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Two Securities Have a Covariance of 0

Question 21

Question 21

Multiple Choice

Two securities have a covariance of 0.076. If their respective standard deviations are 13% and 22%, what is their correlation coefficient?


A) 0.22
B) 0.38
C) 0.58
D) 0.72
E) 0.95

Correct Answer:

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