Question: Problem 8-1 Given the following information: Standard deviation for stock X=12% Standard deviation for stock Y=20% Expected return for stock X=16% Expected return for stock

Problem 8-1 Given the following information: Standard deviation for stock X=12% Standard deviation for stock Y=20% Expected return for stock X=16% Expected return for stock Y=22% Correlation coefficient between X and Y = 0.30 The covariance between X and Y is a) 0.48% b) 0.72% c) 3.60% d) 105.6% 8- 26

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