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Florida Company (FC) and Minnesota Company (MC) Are Both Service

Question 6

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: - 5%, 15%, 20%; MC: 8%, 8%, 20%. Calculate the covariance between the returns of FC and MC.


A) 60
B) 80
C) 40
D) None of the above

Correct Answer:

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