CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Security X has an expected return of 12% and a standard deviation of 20%. Security Y has an expected return of 15% and a standard deviation of 27%. If the two securities have a correlation coefficient of 0.7, what is their covariance?
A. 0.038
B. 0.070
C. 0.018
Explanation: 20% x 27% x 0.7 = 0.038

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