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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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