The Covariance of the Returns Between Stock a and Stock

question 28

Multiple Choice

The covariance of the returns between Stock A and Stock B is 0.0087. The standard deviation of Stock A is 0.26, and the standard deviation of Stock B is 0.37. What is the correlation coefficient between the returns of the two stocks?

• A) 0.090437
• B) 0.096200
• C) 0.90437
• D) 0.96200

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