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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    Florida Company (FC)and Minnesota Company (MC)are Both Service Companies
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Florida Company (FC)and Minnesota Company (MC)are Both Service Companies

Question 71

Question 71

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies.Their stock returns for the past three years were: 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) 100

Correct Answer:

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