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Given Investment E(R) σ Stock A $15,000 10% 10% Stock B $5,000 5% 25% Total $20,000 and Corr(AB) = PAB = −0.25. Find the Covariance between returns of A and B -0.00525 O 0.0625 -0.00625 0.00625 -0.0625

Given Investment E(R) σ Stock A $15,000 10% 10% Stock B $5,000 5% 25% Total $20,000 and Corr(AB) = PAB = −0.25. Find the Covariance between returns of A and B -0.00525 O 0.0625 -0.00625 0.00625 -0.0625

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given Investment E(R) σ Stock A $15,000 10% 10% Stock B $5,000 5% 25% Total $20,000 and Corr(AB) = PAB = −0.25. Find the Covariance between returns of A and B -0.00525 O 0.0625 -0.00625 0.00625 -0.0625
Transcribed Image Text:Given Investment E(R) σ Stock A $15,000 10% 10% Stock B $5,000 5% 25% Total $20,000 and Corr(AB) = PAB = −0.25. Find the Covariance between returns of A and B -0.00525 O 0.0625 -0.00625 0.00625 -0.0625
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