An asset in the Australian market has a beta of 1.0.If the variance of the asset is 10% and the variance of the market index is 25%,what is the asset's covariance with the market?

A) $ 2.50 \% $
B) $ 10.0 \% $
C) $ 25.0 \% $
D) $ 30.0 \% $

Name: An asset in the Australian market has a beta of 1.0.If the variance of the asset is 10% and the variance of the market index is 25%,what is the asset's covariance with the market? A) $ 2.50 \% $ B) $ 10.0 \% $ C) $ 25.0 \% $ D) $ 30.0 \% $
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Question

An asset in the Australian market has a beta of 1.0.If the variance of the asset is 10% and the variance of the market index is 25%,what is the asset's covariance with the market?

A) $ 2.50 \% $
B) $ 10.0 \% $
C) $ 25.0 \% $
D) $ 30.0 \% $

Quizplus · Accepted Answer

The Answer is C

An Asset in the Australian Market Has a Beta of 1.0.If