Kinaxis and Kinross stock has the following historical returns over the past four years: 1.According to your calculations, the returns of Kinaxis and Kinross stock have a covariance of :

A.28.37 % B.0.21 % C.21.28 % D.0.28 %

2. If you had $10,000 to invest in one or both of these securities, you would have to:

A.Invest only in Kinross stock because it has a higher return potential B.Invest only in Kinaxis stock because it has a higher average return and lower risk C.Invest in both stocks to benefit from the diversification effect D.Invest in both stocks in equal proportions to maximize the diversification effect

3. According to your calculations, the returns on Kinaxis and Kinross stock have a correlation of :

A.11.8 % B. 0.118 %

C.0.28%

D. None of the above

Years Kinaxis Kinross 1 8.2% 15% 2 -4.72 % 3.15 % 3 21.65 % 33.19% 4 4 24.32% -8.94%