CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

An analysis of returns from securities P and Q produces a covariance of 0.0494. The correlation between these returns ______
A. equals the covariance multiplied by the product of the standard deviations of P's and Q's returns.
B. equals the covariance divided by the product of the standard deviations of P's and Q's returns.
C. could be positive or negative, depending on the magnitude of the standard deviations of P's and Q's returns.

User Contributed Comments 2

User Comment
monteleone Can someone please explain this answer for me?
pochuevalex it's just the formula
Cor(p,q)=Cov(p,q)/(stand_deviat_p*stand_deviat_q)
that's it no tricks!
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