Question $8$

You have recently calculated investment risk of two assets. The standard deviation for asset $1$ and two are $2\mathrm{.}722132$and $8\mathrm{.}124$ per cent respectively. The covariance between two asset is estimated to be $21\mathrm{.}6.$ the best estimate for the correlation coefficient between two asset is

a$.11\mathrm{.}00$

b$.1\mathrm{.}97$

c$.0\mathrm{.}9767$

d$.$ None of the above answer is correct.

Question $9$

The value of a stock can be best described by the following

a$.$ It is future value of expected cash flow

b$.$ It is the future value of the expected dividend and capital gain

c$.$ It is the present value of expected dividend payment and capital gain

d$.$ None of the above answer is correct