Solved

A Risky Security Has a Variance of

Question 59

Multiple Choice

A risky security has a variance of .036190 and a covariance with the market of .0222.The variance of the market is .01975.What is the correlation of the risky security to the market?


A) 0.51
B) 0.65
C) 0.72
D) 0.83
E) 0.85

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q54: What is the covariance of security A

Q55: Which of the following will affect the

Q57: A portfolio is comprised of two stocks.Stock

Q58: A portfolio consists of two stocks and

Q60: A portfolio consists of one risky asset

Q61: Western Exports stock has a standard deviation

Q63: You own a portfolio which is invested

Q64: Home Interior's stock has an expected return

Q84: All else held constant, which of the

Q87: Which one of the following combinations will