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Basic Question 0 of 15
The covariance of historical returns between mutual funds P and Q is 0.0989. Standard deviations for the two return series are 0.34 and 0.48, respectively. The correlation between historical returns for P and Q is ______.
B. 1.65
C. 0.606
A. 0.1632
B. 1.65
C. 0.606
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data
calculate and interpret portfolio standard deviation
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated
CFA® 2025 Level I Curriculum, Volume 2, Module 1.