Consider Two Securities, a and B

question 53

Multiple Choice

Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65. Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the covariance between these two securities.

• A) 300
• B) 461.54
• C) 261.54
• D) 195
• E) 200

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