The stocks of microsoft and apple have a correlation


The stocks of Microsoft and Apple have a correlation coefficient of 0.6. The variance of Microsoft stock is 0.4 and the variance of Apple stock is 0.3. What is the covariance between the two stocks?

a. 0.72
b. 0.21
c. 0.07
d. 0.36

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Finance Basics: The stocks of microsoft and apple have a correlation
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