While the Covariance Between the Two Stocks, G and H

question 60

Multiple Choice

While the covariance between the two stocks, G and H, is 0.0357, the correlation coefficient is 0.17. Given Stock G has a standard deviation of 50 percent, what is the standard deviation of Stock H?

• A) 49%
• B) 56%
• C) 24%
• D) 42%
• E) 61%