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Basic Question 12 of 23
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 used your notes and passed ... highly recommended!
Lauren
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.