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The correlation between two sets of assets is 0.5. Asset A has a variance of returns of 100 percent squared and Asset B has a
The correlation between two sets of assets is 0.5. Asset A has a variance of returns of 100 percent squared and Asset B has a variance of returns of 400 percent squared. What is the covariance between Asset A and Bs returns in terms of percent squared?
- A. 100
- B. 0.0025
- C. 400
- D. 20,000
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