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