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%