Security X Has Expected Return of 14% and Standard Deviation

question 31

Multiple Choice

Security X has expected return of 14% and standard deviation of 22%.Security Y has expected return of 16% and standard deviation of 28%.If the two securities have a correlation coefficient of 0.8, what is their covariance?

• A)0.038
• B)0.049
• C)0.018
• D)0.013

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Definitions:

Hematocrit

The proportion of blood volume that is occupied by red blood cells, a crucial measurement in diagnosing and managing various medical conditions.

Erythrocytes

Red blood cells that are responsible for carrying oxygen from the lungs to all parts of the body and returning carbon dioxide to the lungs for exhalation.

Fibrinogen

A blood plasma protein that's converted to fibrin in the clotting process, essential for wound healing.

Thrombocyte

Another term for platelets, which are blood cells involved in clotting and wound healing.