Consider Two Securities, a and B

question 53

Multiple Choice

Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65. Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the covariance between these two securities.

• A) 300
• B) 461.54
• C) 261.54
• D) 195
• E) 200

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Definitions:

Microsoft Access

Microsoft's database management system intertwines the relational Microsoft Jet Database Engine, a graphical user interface, and tools for software development.

QBE

Query By Example, a feature of database management systems that allows users to search by filling out a form or a "template" with example elements.

Binary Relationship

A binary relationship in databases and data modeling is a type of association that exists between two entities, indicating how records in one entity relate to records in another.

Entities

Any definable units, such as individuals, organizations, or objects, that exist independently with distinct characteristics.