Question
Security A has expected return of 14% and standard deviation of 18%. Security B has expected return of 17% and standard deviation of 26%. If
Security A has expected return of 14% and standard deviation of 18%. Security B has expected return of 17% and standard deviation of 26%. If the two securities have a correlation coefficient of 0.5, what is their covariance?
Question 1 options:
7.22%. | |
None of the other answers. | |
34.62%. | |
1.19%. | |
2.34%. |
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
