Security X Has Expected Return of 9% and Standard Deviation

question 79

Multiple Choice

Security X has expected return of 9% and standard deviation of 18%. Security Y has expected return of 12% and standard deviation of 21%. If the two securities have a correlation coefficient of −0.4, what is their covariance?

• A) 0.0388
• B) 0.0706
• C) 0.0184
• D) −0.0133
• E) −0.0151

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Definitions:

Intravenous Pyelogram

A radiographic procedure that uses a contrast dye to visualize the kidneys, ureters, and bladder.

Barium Enema

A radiologic procedure performed by a radiologist who administers barium sulfate through the anus, into the rectum, and then into the colon to help diagnose and evaluate obstructions, ulcers, polyps, diverticuloses, tumors, or motility problems of the colon or rectum; also called a lower GI (gastrointestinal) series.

Clear Liquid Diet

A diet that consists of clear liquids and foods that become liquid at room temperature. It's often prescribed before medical tests, procedures, or surgeries.

Laxatives

Medications or substances used to stimulate bowel movements or ease constipation.