Between 1980 and 1990, the Standard Deviation of the Returns

question 30

Multiple Choice

Between 1980 and 1990, the standard deviation of the returns for the NIKKEI and the DJIA indexes were 0.19 and 0.06, respectively, and the covariance of these index returns was 0.0014. What was the correlation coefficient between the two market indicators?

• A) 8.1428
• B) 0.0233
• C) 0.0073
• D) 0.2514
• E) 0.1228

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