Question
What comes closest to the variance of Stock A and the standard deviation of Stock B? Select one: a. .01306; .15200 b. .01306; .08256 c.
What comes closest to the variance of Stock A and the standard deviation of Stock B?
Select one:
a. .01306; .15200
b. .01306; .08256
c. .00113; .01067
d. .00113; .10330
e. .14900; .15200
A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance between Stock X and Stock Y is 0.09. The standard deviation of Stock X is 0.50, and the standard deviation of Stock Y is 0.50. Which of the following comes closest to the correlation coefficient between Stock X and Stock Y?
Select one:
a. 0.00
b. 0.09
c. 0.18
d. 0.36
e. 1.00
State of Nature Probability Return on Stock A Return on Stock B Recession Slow Growth Expansion 08 .14 .28 04 .20 .16 15% 30%Step by Step Solution
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