Assume a Portfolio Is Comprised of Two Securities,A and B,whose

question 25

Multiple Choice

Assume a portfolio is comprised of two securities,A and B,whose standard deviations are 0.0412 and 0.0721,respectively.If their covariance is 0.002,what is their coefficient of correlation?

• A)0.005
• B)0.115
• C)0.673
• D)1.485

---

Definitions:

Environmental Issues

Problems related to the environment, including pollution, climate change, and resource depletion, affecting ecosystems and human well-being.

Disjoint Events

Two or more events that cannot occur simultaneously, having no outcomes in common.

Entertained by Reading

The act of finding enjoyment or amusement through the activity of reading books, articles, or other written materials.

Probability

The expression of an event's probability of occurring, presented as a number between 0 and 1.