Assume a Portfolio Is Comprised of Two Securities,A and B,whose

question 25

Multiple Choice

Assume a portfolio is comprised of two securities,A and B,whose standard deviations are 0.0412 and 0.0721,respectively.If their covariance is 0.002,what is their coefficient of correlation?

• A)0.005
• B)0.115
• C)0.673
• D)1.485

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Definitions:

ADA

The Americans with Disabilities Act, a civil rights law that prohibits discrimination based on disability.

Social Security Act

A 1935 US law establishing a system of federal old-age benefits, and providing for unemployment insurance, disability insurance, and survivors' insurance.

Retirement Age

The age at which a person is generally expected to retire from the workforce, often determined by government policy or employment contracts.

Exempt Amount

Refers to the portion of income that is not subject to tax or is exempt from standard calculations in various contexts.