Asked by
tiahjanae walker
on Dec 05, 2024
Verified
What is the covariance between the two assets?
A) 4.64
B) 4.69
C) 4.77
D) 4.81
Covariance
A statistical measure that indicates the extent to which two variables change together; if positive, the variables move in the same direction, and if negative, they move in opposite directions.
Two Assets
Refers to any pair of financial instruments or physical goods that a company or individual holds, often for the purpose of investment or diversification.
PHStat
An Excel add-in designed to perform statistical analysis, specifically tailored for business statistics courses.
- Comprehend the methodology of executing day trading analysis with PHStat to inform investment choices.
- Evaluate the connection between risk and return within the context of making investment decisions.
- Comprehend the principle of covariance and its significance in evaluating portfolio risk.
Verified Answer
MH
Learning Objectives
- Comprehend the methodology of executing day trading analysis with PHStat to inform investment choices.
- Evaluate the connection between risk and return within the context of making investment decisions.
- Comprehend the principle of covariance and its significance in evaluating portfolio risk.