A Risky Security Has a Variance of

question 59

Multiple Choice

A risky security has a variance of .036190 and a covariance with the market of .0222.The variance of the market is .01975.What is the correlation of the risky security to the market?

• A) 0.51
• B) 0.65
• C) 0.72
• D) 0.83
• E) 0.85

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Definitions:

Atoms

The basic units of matter and the defining structure of elements, consisting of a nucleus surrounded by electrons.

Systematic Name

A name given to compounds as per the rules determined by the International Union of Pure and Applied Chemistry (IUPAC).

Dihydrogen Monoxide

Another term for water, highlighting its chemical composition of two hydrogen atoms and one oxygen atom.