An analyst produces the following joint probability function for a foreign index (FI) and a domestic index

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An analyst produces the following joint probability function for a foreign index (FI) and a domestic index (DI).

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The covariance of returns on the foreign index and the returns on the domestic index is closest to:
A. 26.39.
B. 26.56.
C. 28.12.

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Quantitative Investment Analysis

ISBN: 9781119743620

4th Edition

Authors: CFA Institute

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Question Posted: Oct 25, 2024 10:06 AM

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An analyst produces the following joint probability function for a foreign index (FI) and a domestic index

Question:

RDI= 30% RDI = 25% RDI -15% RFI = 25% 0.25 RFI 15% RFT=10% 0.50 0.25

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Quantitative Investment Analysis

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