The covariance of stock Walter Inc. and Boo-boo Corp. is 0.50. The standard deviation of Walter is 1 and the standard deviation of Boo-boo is also 1. What is the correlation coefficient for Walter and Boo-boo? Question 20 options: a) b) c) d) 0.50 0.25 not enough information to answer none of the above

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
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The covariance of stock Walter
Inc. and Boo-boo Corp. is 0.50.
The standard deviation of Walter
is 1 and the standard deviation of
Boo-boo is also 1. What is the
correlation coefficient for Walter
and Boo-boo?
Question 20 options:
a)
b)
c)
d)
0.50
0.25
not enough
information to answer
none of the above
Transcribed Image Text:The covariance of stock Walter Inc. and Boo-boo Corp. is 0.50. The standard deviation of Walter is 1 and the standard deviation of Boo-boo is also 1. What is the correlation coefficient for Walter and Boo-boo? Question 20 options: a) b) c) d) 0.50 0.25 not enough information to answer none of the above
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