Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65. Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the covariance between these two securities.
A) 300
B) 461.54
C) 261.54
D) 195
E) 200

Question

Quizplus · Accepted Answer

The Answer of Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65. Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the covariance between these two securities.
A) 300
B) 461.54
C) 261.54
D) 195
E) 200

Consider Two Securities, a and B