A statistical measure of the degree to which two or more series move together or co-vary is best described as:
A) variance.
B) covariance.
C) diversification.
D) standard deviation.

Question

Quizplus · Accepted Answer

Covariance is a measure that determines the degree to which two variables change in tandem. It's used to understand how two variables are related to each other, indicating if increases in one variable correspond with increases (positive covariance) or decreases (negative covariance) in the other.

A Statistical Measure of the Degree to Which Two or More