While Stock a Has a Standard Deviation of 37 Percent

question 76

Multiple Choice

While Stock A has a standard deviation of 37 percent, Stock B has a standard deviation of 46 percent. If the correlation between the stocks is 0.1528, what is the covariance?

• A) 0.1702
• B) 0.0260
• C) 0.2875
• D) 0.1270
• E) 0.0565