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  3. Study Set
    Principles of Corporate Finance
  4. Exam
    Exam 9: Risk and the Cost of Capital
  5. Question
    The Historical Returns for the Past Three Years for Stock
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The Historical Returns for the Past Three Years for Stock

Question 2

Question 2

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio are: Stock B: 24%,0%,24%; Market portfolio: 10%,12%,20%.Calculate the observed covariance of returns between Stock B and the market portfolio.


A) 24
B) 28
C) 36
D) 292

Correct Answer:

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