QUESTIONS 115 THROUGH 120 RELATE TO PORTFOLIO MANAGEMENT.

117. The following table presents historical information for two stocks, RTF and KIU:

Variance of returns for RTF 0.0625

Variance of returns for KIU 0.0900

Correlation coefficient between RTF and KIU 0.4500

The covariance between RTF and KIU is closest to:

A. 0.0025.

B. 0.0338.

C. 0.0675.