Security X has expected return of 14% and standard deviation of 22%. Security Y has expected return of 16% and standard deviation of 28%. If the two securities have a correlation coefficient of 0.8, what is their
Covariance?
A) 0.038
B) 0.049
C) 0.018
D) 0.013
E) 0.054
Correct Answer:
Verified
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