Solved

If the Correlation Coefficient Between the Returns on Stock C

Question 72

Multiple Choice

If the correlation coefficient between the returns on stock C and stock D is +1.0, the standard deviation of return for stock C is 15 percent, and that for stock D is 30 percent, calculate the covariance between stock C and stock D.


A) +45
B) -450
C) +450
D) -45

Correct Answer:

verifed

Verified

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

Related Questions