If the covariance between two stocks is 115% and the standard deviation of both stocks are 23% and -13% respectively, what is the correlation coefficient between the two stocks? If the correlation between two stocks is .49 and the standard deviation of both stocks are 39% and 12% respectively, what is the covariance (in percent) between the two stocks?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 15P
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If the covariance between two stocks is 115% and the standard deviation of both stocks are 23% and -13% respectively, what is the correlation coefficient between the two stocks?

If the correlation between two stocks is .49 and the standard deviation of both stocks are 39% and 12% respectively, what is the covariance (in percent) between the two stocks?

Assume that a $2 million factory is insured and sustains a $700,000 loss. If pro rata coverage exists in which the primary insurer retains 76 percent of the coverage and the reinsurer provides the remaining coverage, how much with the reinsurer pay?

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