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American_Bankers_Association

CTFA · Question #82

A statistical measure of the degree to which two variables (e.g., securities' returns) move together is:

The correct answer is C. Co-variance. See the full explanation below for the reasoning.

Investment Management

Question

A statistical measure of the degree to which two variables (e.g., securities' returns) move together is:

Options

  • ACoefficient of variation
  • BVariance
  • CCo-variance
  • DCertainty equivalent

How the community answered

(33 responses)
  • A
    12% (4)
  • B
    6% (2)
  • C
    79% (26)
  • D
    3% (1)

Topics

#covariance#portfolio statistics#return correlation#risk measures

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