What Is the Correlation Coefficient for Two Assets with a Covariance

question 2

Multiple Choice

What is the correlation coefficient for two assets with a covariance of .0032, if asset 1 has a standard deviation of 12 percent and asset 2 has a standard deviation of 9 percent?

• A) 0.2963
• B) 0.3456
• C) 0.8721
• D) 1.5980

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Definitions:

Nonunion Replacement Workers

Employees hired to work in place of union members during a strike or labor dispute.

Decertified The Union

The process where a union loses its legal rights to represent the employees in a workplace, usually through a vote by the affected workers.

Teamsters Union

An American labor union known formally as the International Brotherhood of Teamsters, representing a diverse membership across various industrial and professional sectors.

AFL

Stands for the American Federation of Labor, a national federation of labor unions in the United States, founded in 1886, and known for focusing on skilled workers.