Two securities have a covariance of 0.076. If their respective standard deviations are 13% and 22%, what is their correlation coefficient? Multiple Choice O 0.72 0.95 0.22 O 0.38 0.58
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- The covariance between the returns on two stock is 0.0425. The standard deviations of stocks A and B are 0.2041 and 0.2944, respectively. Calculate and interpret the correlations between the two assetsWhat is the correlation between returns of stock S and T, given that covariance between stocks is 2.419 and standard deviation are 1.23 and 2.21, respectively.The covariance of the returns on the two securities, A and B, is -0.005. Thestandard deviation of A's returns is 3% and the standard deviation of B's returns is 5.5%.What is the correlation between the returns of A and B?
- Security X has expected return of 14% and standard deviation of 22%. Security Y has expected return of 16% and standard deviation of 28%. If the two securities have a correlation coefficient of 0.8, what is their covariance? 0.049 0.038 0.018 0.013If the standard deviation of stock 'A' is .25, the standard deviation of stock 'B' is .30, and the correlation between stocks 'A' and 'B' is 0.7, the covariance between stocks 'A' and 'B' is___.a. The standard deviation of returns is 0.30 for Stock A and 0.20 for Stock B. The covariance betweenthe returns of A and B is 0.006. The correlation of returns between A and B is:
- the variance of stock A is .004, the variance of the market .007 and the covariance between the two is .0026. what is the correlation coefficient?If the correlation between two stocks is .49 and the standard deviation of both stocks are 39% and 12% respectively, what is the covariance (in percent) between the two stocks?Suppose that the index model for stocks A and B is estimated from excess returns with the following results:RA = 3% + .7RM + eARB = −2% + 1.2RM + eBσM = 20%; R-squareA = .20; R-squareB = .12What are the covariance and the correlation coefficient between the two stocks?
- The covariance of the market's returns with the stock's returns is 0.008. The standard deviation ofthe market's returns is 0.08, and the standard deviation of the stock's returns is 0. 11. What is thecorrelation coefficient of the returns of the stock and the returns of the market?Given the following information, determine which beta coefficient for stock A is consistent with equili-barium: rs= 10.1%; rRF= 3.2%; rM= 11.2%Suppose the index model for stocks A and B is estimated with the following results:rA = 2% + 0.8RM + eA, rB = 2% + 1.2RM + eB , σM = 20%, and RM = rM − rf . The regressionR2 of stocks A and B is 0.40 and 0.30, respectively.(a) What is the variance of each stock? (b) What is the firm-specific risk of each stock? (c) What is the covariance between the two stocks?