Assume a Portfolio Is Comprised of Two Securities,A and B,whose

question 25

Multiple Choice

Assume a portfolio is comprised of two securities,A and B,whose standard deviations are 0.0412 and 0.0721,respectively.If their covariance is 0.002,what is their coefficient of correlation?

• A)0.005
• B)0.115
• C)0.673
• D)1.485

---

Definitions:

Erik Erikson

A psychoanalyst known for his theory on the psychosocial development of humans, which maps out eight stages of personality and psychological development across the lifespan.

Identity Development

The process in which individuals explore and make decisions about important aspects of themselves, such as personal values, beliefs, and goals.

Drug Use

The consumption of substances that alter psychological or physiological states, which can include legal medications, alcohol, and illicit drugs.

Intimate Self-disclosure

The process of revealing personal, private thoughts or feelings to someone else, fostering closeness and trust.