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What Is the Correlation Coefficient for Two Assets with a Covariance

Question 1

Multiple Choice

What is the correlation coefficient for two assets with a covariance of .0032, if asset 1 has a standard deviation of 12 percent and asset 2 has a standard deviation of 9 percent?


A) 0.2963
B) 0.3456
C) 0.8721
D) 1.5980

Correct Answer:

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