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Security M has expected return of 17% and standard deviation of 32%.Security S has expected return of 13% and standard deviation of 19%.If the two securities have a correlation coefficient of 0.78, what is their covariance?
Law of Diminishing Returns
An economic principle stating that, holding all else constant, as one input variable to the production process is increased, there comes a point when the added output from each additional unit of input decreases.
Productive
refers to the capability of producing significant amounts of goods and services, or contributing to economic output efficiently.
Intelligence
The ability to learn, understand, and make judgments or have opinions that are based on reason.
Variable Costs
Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.
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