Question
19.XYZ fund has a correlation coefficient of .9 with the S & P500.What percentage of the variability of return on XYX fund is caused by
19.XYZ fund has a correlation coefficient of .9 with the S & P500.What percentage of the variability of return on XYX fund is caused by the variability of the S & P 500?Also, what percentage of the funds variability is caused by unsytematic factors?
A. 90%, 10% B. 81%, 10% C. 81%, 19% D. 90%, 19%
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
