The correlation coefficient measures the:Group of answer choicesdegree of s unique risk present in the standard deviations of a pair of stocks.degree to which the returns of two stocks move together.rate of return of individual stocks.direction of movement of the return of individual stocks

Stock X has a standard deviation of return of 30%. Stock Y has a standard deviation of return of 20%. The correlation coefficient between the two stocks is 0.61. If you invest 60% of your funds in Stock X and 40% in Stock Y.The standard deviation of your portfolio is, therefore ______%.

THe Correlation coefficient is also known as Group of answer choicesdegree of variabilitya random variableThe Pearson producment moment correlation coefficient.the measure of covariance

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.75. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is _________. Group of answer choices17.74%21.59%20.39%19.11%

The correlation in returns between two stocks is generally:Group of answer choiceshigher if they are competitors in the same industrylower if they are competitors in the same industrynegative if they are in different industries

A correlation coefficient consists of two things: ____________ and __________Question 7Answera.Direction and strengthb.Sign, absolute valuec.Absolute value, strengthd.Sign and direction