The variance of Stock A is .003969,the variance of Stock B is .007056,and the covariance between the two is .0026.What is the correlation coefficient?
A).9284
B).8542
C).5010
D).4913
E).3510

Name: The variance of Stock A is .003969,the variance of Stock B is .007056,and the covariance between the two is .0026.What is the correlation coefficient? A).9284 B).8542 C).5010 D).4913 E).3510
Brand: Quizplus
Rating: 4.8 (29 reviews)

Question

Quizplus · Accepted Answer

σ_A = √.003969 = .063σ_B = √.007056 = .084ρ_A,B = .0026/(.063 × .084)= .4913

The Variance of Stock a Is