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

---

Definitions:

Alkyl Halide

An organic compound containing a halogen atom (chlorine, bromine, fluorine, or iodine) bonded to an alkyl group.

Enantiomeric

Referring to each of a pair of molecules that are mirror images of each other but cannot be superimposed, just like left and right hands.

Mixture

A combination of two or more substances in which each substance retains its own chemical identity and properties.

Structural Rearrangement

A process involving changes in the arrangement of atoms within a molecule, leading to the formation of a different structural isomer.