Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 1 of 17
If the standard deviation of stock A is 30%, the standard deviation of stock B is 30%, and the correlation between stocks A and B is 0.8, the covariance between stocks A and B is ______.
B. 7.2%
C. 6.42%
A. 9%
B. 7.2%
C. 6.42%
User Contributed Comments 0
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret portfolio standard deviation;
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated;
CFA® 2024 Level I Curriculum, Volume 5, Module 62.