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Given the following: Correlation between securities 1 and 2 = 0.70 Standard Deviation of Security 1 = 5% Standard Deviation of Security 2 = 10%
Given the following: Correlation between securities 1 and 2 = 0.70 Standard Deviation of Security 1 = 5% Standard Deviation of Security 2 = 10% The covariance between the 2 securities is
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35%
42.5% 32.5%
52.5%
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