Multiple Choice
The covariance between the returns of stock A and stock B is -125. The standard deviation of the rates of return is 20 for stock A and 10 for stock B. The correlation coefficient of the rates of return between A and B is closest to ________.
A) -0.625
B) -0.375
C) 0.375
D) 0.625
Correct Answer:
Verified
Correct Answer:
Verified
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