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A Risky Security Has a Variance of

Question 43

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) .51
B) .65
C) .72
D) .83
E) .85

Correct Answer:

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