The correlation between shares A and B is the:
A)covariance between A and B divided by the standard deviation of A times the standard
Deviation of B.
B)standard deviation A divided by the standard deviation of B.
C)standard deviation of B divided by the covariance between A and B.
D)variance of A plus the variance of B dividend by the covariance.
E)None of the above.

Question

Quizplus · Accepted Answer

Correlation is measured as the covariance between two variables divided by the product of their standard deviations. Thus, Choice A is the correct formula.

The Correlation Between Shares a and B Is The