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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Definitions:

Neurotypicality

A term describing the cognitive function of individuals who are not on the autism spectrum, often used in discussions about neurological diversity.

Implicit Personality Theories

The assumptions people make about how different types of personalities, traits, and behaviors are related to each other.

Preexisting Schemas

Cognitive structures that help individuals organize and interpret information based on prior experiences and knowledge.

Impressions

Schemas people have about other individuals.