Chartered Financial Analyst Level 1
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The correlation of returns between two securities with equal standard deviation of returns is 0.75. If the covariance of returns is 5.5%², the standard deviation of returns for each security is closest to:
The correlation of returns between two securities with equal standard deviation of returns is 0.75. If the covariance of returns is 5.5%², the standard deviation of returns for each security is closest to:
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A
2.7%.
50.0%
B
3.7%.
25.0%
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