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Econometrics

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Moderate

Covariance Example

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Suppose asset $Y$ has a variance of 25, asset $X$ has a variance of 64, and the correlation between the returns is 0.8.

What is the covariance between the two assets?

A

$9.75$

B

$13.75$

C

$63.75$

D

$32$

E

$1323$