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Basic Question 0 of 28
The following table represents the estimated returns for two motor vehicle production brands - ABC and XYZ, in 3 industrial environments: Strong (50% probability), average (30% probability) and weak (20% probability).
Given the above joint probability function, the covariance between ABC and XYZ returns is closest to:
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
calculate and interpret the covariance and correlation of portfolio returns using a joint probability function for returns
CFA® 2025 Level I Curriculum, Volume 1, Module 5.