What is the covariance of security A to the market given the following information?

A) 75.0
B) 80.1
C) 83.8
D) 87.0
E) 91.1

Name: What is the covariance of security A to the market given the following information? A) 75.0 B) 80.1 C) 83.8 D) 87.0 E) 91.1
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Question

What is the covariance of security A to the market given the following information?

A) 75.0 
B) 80.1 
C) 83.8 
D) 87.0 
E) 91.1

Quizplus · Accepted Answer

11ea6d0e_c3e4_4c95_b3c7_491e1265c2fd_TB1223_00 Average return_Security = 21/3 = 7.0 Average return_Market = 15/3 = 5.0 Covariance = 150/(3 − 1) = 75.0

What Is the Covariance of Security a to the Market