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    Exam 2: Diversification and Risky Asset Allocation
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    While Stock a Has a Standard Deviation of 37 Percent
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While Stock a Has a Standard Deviation of 37 Percent

Question 76

Question 76

Multiple Choice

While Stock A has a standard deviation of 37 percent, Stock B has a standard deviation of 46 percent. If the correlation between the stocks is 0.1528, what is the covariance?


A) 0.1702
B) 0.0260
C) 0.2875
D) 0.1270
E) 0.0565

Correct Answer:

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