What is the covariance of security A to the market given the following information?

A) 23.14
B) 29.88
C) 48.83
D) 99.18
E) 114.01

Name: What is the covariance of security A to the market given the following information? A) 23.14 B) 29.88 C) 48.83 D) 99.18 E) 114.01
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Question

What is the covariance of security A to the market given the following information?

A) 23.14 
B) 29.88 
C) 48.83 
D) 99.18 
E) 114.01

Quizplus · Accepted Answer

11ea6d0e_c3e4_73a9_b3c7_3f8227ea439e_TB1223_00 Average return_Security = 26/4 = 6.5 Average return_Market = 27/4 = 6.75 Covariance = 146.5/(4 − 1) = 48.83

What Is the Covariance of Security a to the Market