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If the Covariance Between Two Stocks Is 115 and the Standard

Question 33

Multiple Choice

If the covariance between two stocks is 115 and the standard deviation of both stocks are 17 and -8 respectively, what is the Correlation Coefficient between the two stocks?


A) 0.18
B) 0.85
C) -0.85
D) There is not enough information to calculate the Correlation Coefficient.

Correct Answer:

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