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If the Covariance Between Stock a and Stock B Is

Question 53

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) 0.0

Correct Answer:

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