A statistical measure of how closely two variables (such the returns on securities) move together.a.varianceb.percentage of variationc.equal to certaintyd.covariance
Question
A statistical measure of how closely two variables (such the returns on securities) move together.a.varianceb.percentage of variationc.equal to certaintyd.covariance
Solution
The answer is d. Covariance. Covariance is a statistical measure of how much two random variables vary together. It's similar to variance, but where variance tells you how a single variable varies, covariance tells you how two variables vary together.
Similar Questions
A statistical measure of the spread between the mean and the return of a financial asset is measured by the:Select one:a. Covarianceb. Variancec. Correlation coefficientd. Coefficient of variation
Two securities equally constitute a portfolio. The securities have standard deviations of 3% and 15% respectively. If the standard deviation of the portfolio is 5.00%, the covariance between the two securities is equal to: Question 20Answera.-1.489b.0.0008c.-0.0067
A statistical measure of the variability of a distribution around its mean is referred to as
The covariance between the two stock returns is .
_____ is the probability of getting return. It is measured in terms of deviation between actual return and expected return.*PortfolioInvestmentReturnDerivativeRisk
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.