Security M has expected return of 17% and standard deviation of 32%. Security S has expected return of 13% and standard deviation of 19%. If the two securities have a correlation coefficient of 0.78, what is their
Covariance?
A) 0.038
B) 0.049
C) 0.047
D) 0.045
E) 0.054
Correct Answer:
Verified
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