Between 1999 and 2009, the Standard Deviation of the Returns

question 3

Multiple Choice

Between 1999 and 2009, the standard deviation of the returns for the S&P/TSX and the DJIA indexes were 0.18 and 0.16, respectively, and the covariance of these index returns was 0.003. What was the correlation coefficient between the two market indicators?

• A) 9.6
• B) 0.0187
• C) 0.1042
• D) 0.0166
• E) 0.343

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