Between 1986 and 1996, the Standard Deviation of the Returns

question 32

Multiple Choice

Between 1986 and 1996, the standard deviation of the returns for the NYSE and the DJIA indexes were 0.10 and 0.09, respectively, and the covariance of these index returns was 0.0009. What was the correlation coefficient between the two market indicators?

• A) .1000
• B) .1100
• C) .1258
• D) .1322
• E) .1164

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