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:

Benefits

The advantages or positive outcomes received from a product, service, policy, or employment, such as health insurance, job satisfaction, or convenience.

Need

A basic requirement or necessity for survival and well-being of individuals or communities.