If the covariance of Stock A with Stock B is

Name: If the covariance of Stock A with Stock B is - 100, what is the covariance of Stock B with Stock A? A) +100 B) -100 C) 1/100 D) Need additional information
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Question

If the covariance of Stock A with Stock B is - 100, what is the covariance of Stock B with
Stock A?
A) +100
B) -100
C) 1/100
D) Need additional information

Quizplus · Accepted Answer

The covariance between two assets is the same regardless of the order of the assets. Therefore, the covariance of B with A is also -100.