Finding Covariance from Standard Deviation and Correlation Coefficient
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A security has expected return of 19% and standard deviation of 22%. Security B has expected return of 18% and standard deviation of 15%. If the two securities have a correlation coefficient of -0.79, what is their covariance?
Formula:
Cov = σA * σB * ρAB
-0.02607 = .22 * .15 * (-.79)
how to calculate covariance
how to find covariance
Видео Finding Covariance from Standard Deviation and Correlation Coefficient канала Booksmart Fin
A security has expected return of 19% and standard deviation of 22%. Security B has expected return of 18% and standard deviation of 15%. If the two securities have a correlation coefficient of -0.79, what is their covariance?
Formula:
Cov = σA * σB * ρAB
-0.02607 = .22 * .15 * (-.79)
how to calculate covariance
how to find covariance
Видео Finding Covariance from Standard Deviation and Correlation Coefficient канала Booksmart Fin
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