Between 1994 and 2004, the Standard Deviation of the Returns

question 54

Multiple Choice

Between 1994 and 2004, the standard deviation of the returns for the S&P 500 and the NYSE indexes were 0.27 and 0.14, respectively, and the covariance of these index returns was 0.03. What was the correlation coefficient between the two market indicators?

• A) 1.26
• B) 0.7937
• C) 0.2142
• D) 0.1111
• E) 0.44

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