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Corporate Finance · End Term · 22 Dec 2024 · September 2024 term · Set QDB3

Question 35: Security A has an expected return of 18% and a standard …

Question 35

+4 marksNumerical answer

Security A has an expected return of 18% and a standard deviation of 20%. Security B has an expected return of 16% and a standard deviation of 25%. If the rates of return of the two securities have a correlation coefficient of 0.4, what is their covariance (in %)?
**Note:**The answer is a single digit integer between 0-9.

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Correct answer: 2

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Question 35 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 4 marks.

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