Question: Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.1% 72.7% -25.7% 56.9% 6.7% 17.9% Home Depot Realized Return -14.6%

Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005

Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.1% 72.7% -25.7% 56.9% 6.7% 17.9% Home Depot Realized Return -14.6% 4.5% -58.1% 71.8% 17.3% 0.9% IBM Realized Return 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% The covariance between Lowes' and Home Depot's returns is closest to OA) 0.10 B) 0.31 C) 0.12 D) 0.73

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