Security X Has Expected Return of 9% and Standard Deviation

question 79

Multiple Choice

Security X has expected return of 9% and standard deviation of 18%. Security Y has expected return of 12% and standard deviation of 21%. If the two securities have a correlation coefficient of −0.4, what is their covariance?

• A) 0.0388
• B) 0.0706
• C) 0.0184
• D) −0.0133
• E) −0.0151

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Definitions:

Eugenics Movement

A historical campaign aimed at improving the genetic composition of the human race through selective breeding and sterilization.

Social Status

The position or rank of a person or group within the hierarchical structure of society, often influenced by factors like wealth, occupation, and education.

Sexual Identity

An individual's personal sense of their own gender or sexual orientation, which can influence their behaviors, desires, and social interactions.

Sexual Socialization

The process by which individuals learn and acquire the sexual norms, behaviors, and attitudes prevalent in their society.