Security M Has Expected Return of 17% and Standard Deviation

question 59

Multiple Choice

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?

• A)0.038
• B)0.049
• C)0.047
• D)0.045

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Definitions:

Life-Threatening Events

Situations or incidents that pose immediate and serious risk to a person's life or health.

Terminal Illness

A disease or condition that is ultimately incurable or irreversible and expected to result in the death of the patient within a relatively short period.

Self-Healing

Self-healing refers to the process by which an individual's body or mind recovers from illness or trauma without medical intervention, utilizing the body's innate mechanisms.

Consciousness Expands

The process of increasing awareness and understanding, often related to personal growth or spiritual development.