Between 1989 and 1999, the Standard Deviation of the Returns

question 59

Multiple Choice

Between 1989 and 1999, the standard deviation of the returns for the S&P/TSX 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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