Covariance question

CFA Level I Quant
#1

There must be a quick way to get to this answer but I am stumped. I understand the basic formula for correlation is COV divided by product of Standard Deviations. Any suggestions?

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#2

Hey stillmanaf,

You can just use the formula you mentioned and solve for covariance:

.41= x/(.125*.142)

x= .41*(.125*.142)

x= .00727

#3

Thanks tgile!

I get it now. It is amazing how basic algebra goes out of the window when under the pressure of time!

Many thanks!