The correlation between two sets of assets is -0.1. Asset A has a variance of returns of 25 percent squared and Asset B has a variance of returns of 144 percent squared. What is the covariance between Asset A and B’s returns in terms of percent squared?
Covariance=Correlation*sqrt(Variance of A)*sqrt(Variance of B)=-0.1*sqrt(25%%)*sqrt(144%%)=-6.0%%
The correlation between two sets of assets is -0.1. Asset A has a variance of returns...
The variance of return on investment A is 144 percent squared while the variance of return on investment B is 225 percent squared. If the covariance of returns on A and B is 150 percent squared, the correlation coefficient between the returns on A and B is closest to: A. 187.5 B. 0.0046 C. 1.2 D. 0.83
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