Security X Has Expected Return of 12% and Standard Deviation

question 46

Multiple Choice

Security X has expected return of 12% and standard deviation of 18%.Security Y has expected return of 15% and standard deviation of 26%.If the two securities have a correlation coefficient of 0.7, what is their covariance?

• A)0.038
• B)0.070
• C)0.018
• D)0.033

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