The variance of Stock A is .015376,the variance of Stock B is .028561,and the covariance between the two is .0024.What is the correlation coefficient?
A).9284
B).1542
C).5465
D).1145
E).0910

Name: The variance of Stock A is .015376,the variance of Stock B is .028561,and the covariance between the two is .0024.What is the correlation coefficient? A).9284 B).1542 C).5465 D).1145 E).0910
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Quizplus · Accepted Answer

σ_A = √.015376 = .124σ_B = √.028561 = .169ρ_A,B = .0024/(.124 × .169)= .1145

The Variance of Stock a Is