Question: What is the correlation coefficient if security A has a standard deviation of 15.5%, security B has a standard deviation of 26.6%, and the covariance

  1. What is the correlation coefficient if security A has a standard deviation of 15.5%, security B has a standard deviation of 26.6%, and the covariance is 1.4%?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

What is the correlation coefficient if security A has a standard deviation of 15.5%, security B has a standard deviation of 26.6%, and the covariance is 1.4%? Choose one answer. 0.06 0.42 0.29 0.34

Q:

The chart at the bottom corresponds with the questions Ald can be seen Fund U.S. Stock - Percent Arula frard Devotion Proin , , where is the mean 1 2. Based on the article provided to you in class,...

Q:

20.Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65 Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the...

Q:

Be sure to write the formulas used and substitute values. Show your work in detailed. Answers are 100% correct 11. You buy 100 shares of Pink Bismol, Inc. stock at $35 per share on a margin of 50...

Q:

Consider two securities, A and B. Security A and B have a correlation coefficient of 0.65. Security A has standard deviation of 12, and security B has standard deviation of 25. Calculate the...

Q:

If the two securities in the portfolio (A & B) have a 0.50% (50 percent) correlation coefficient, then what is the expected standard deviation of an equal weighted portfolio equal to? If the...

Q:

Please show your work answering in Excel. Thank you. su Use the following data to answer parts a through f. A portfolio manager creates the following portfolio with 2 securities: Expected Expected...

Q:

Jimmy has the following two investments in his portfolio: a. Which investment is riskier by itself and in a portfolio sense? b. What is the expected return of the portfolio? c. With a correlation...

Q:

Jimmy has the following two investments in his portfolio: a. What investment is riskier by itself and in a portfolio sense? b. What is the expected return on the portfolio? c. With a correlation...

Q:

Need an assistance with the following questions. Kindly address all of them. Four assets have the following distribution of returns. Probability Rate of return (%) Occurrence A B C D 0.1 10.0% 6.0%...

Q:

What is the angle between the lines L1:x = 1 + 2t, y = 3t, z = 4t and L2:x = 2 + 6t, y = 1- 4t, z = 9 ? . 300 b. 45 . 600 d. 90 e. None of the above

Q:

Loss of atmospheric ozone has led to an ozone "hole" over Antarctica. The process occurs in part by three consecutive reactions. (Each of the reactants and products in these reactions are gases.) (1)...

Q:

Which of the following is true of money and financial markets? (A) As the demand for bonds increases, the interest rate increases. (B) For a given money supply, if nominal GDP increases, the velocity...

Q:

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

Q:

_____ 5. a company that will act as a small businesss export department

Q:

_____10. certification of a manufacturers methods of product development a. dating service b. 80 percent c. travel guides d. just because e. China f. joint venture g. 95 percent h. good reason i....

Q:

_____ 8. the completion of a business deal without the use of money