Chartered Financial Analyst Level 1
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An analyst gathers the following historical information about two stocks:
Variance of returns for Stock 1 0.0625 Variance of returns for Stock 2 0.0900 Correlation coefficient between Stock 1 and Stock 2 0.4500
The covariance between Stock 1 and Stock 2 is closest to:
An analyst gathers the following historical information about two stocks:
| Variance of returns for Stock 1 | 0.0625 |
|---|---|
| Variance of returns for Stock 2 | 0.0900 |
| Correlation coefficient between Stock 1 and Stock 2 | 0.4500 |
The covariance between Stock 1 and Stock 2 is closest to:
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