In a two-security portfolio, 25% is invested in Security A and the remainder in Security B.If the portfolio standard deviation is 12%, and the individual standard deviations for Security A and Security B are 22% and 7%, respectively, what is the covariance of the returns on Securities A and B?
A)0.017
B)0.023
C)0.0375
D)0.0469

Question

Quizplus · Accepted Answer

The Answer of In a two-security portfolio, 25% is invested in Security A and the remainder in Security B.If the portfolio standard deviation is 12%, and the individual standard deviations for Security A and Security B are 22% and 7%, respectively, what is the covariance of the returns on Securities A and B?
A)0.017
B)0.023
C)0.0375
D)0.0469

In a Two-Security Portfolio, 25% Is Invested in Security a and the Remainder