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Covariance between the two stocks

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Reference no: EM131114027

The stocks of Microsoft and Apple have a correlation coefficient of 0.6. The variance of Microsoft stock is 0.4 and the variance of Apple stock is 0.3. What is the covariance between the two stocks?

a. 0.72
b. 0.21
c. 0.07
d. 0.36

Reference no: EM131114027

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