- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 62. Portfolio Risk and Return: Part I
- Subject 5. Portfolio Risk
CFA Practice Question
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%
Correct Answer: B
Covariance = 30% x 30% x 0.8 = 7.2%
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