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If the Covariance Between Stock a and Stock B Is

Question 51

Multiple Choice

If the covariance between stock A and stock B is 100, the standard deviation of stock A is
10% and that of stock B is 20%, calculate the correlation coefficient between the two securities.


A) -0.5
B) +1.0
C) +0.5
D) None of the above

Correct Answer:

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