The return on stock A has a covariance of 0.1 with the return on the market portfolio
Fantastic news! We've Found the answer you've been seeking!
Question:
The return on stock A has a covariance of 0.1 with the return on the market portfolio whereas the return on stock B has covariance of 0.3 with the market return. The return on which stock moves more closely with the return on the market portfolio?
Select one:
a. Stock B
b. Insufficient information: we would also need the standard deviations of both stocks A and B
c. Insufficient information: we would need the covariance between A and B
d. Stock Ae. Insufficient information: we would also need the variance of the market
Related Book For
An Introduction to Management Science Quantitative Approaches to Decision Making
ISBN: 978-1111823610
14th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Posted Date: