A statistic that measures how the returns of two risky assets move together is:
A) variance.
B) standard deviation.
C) covariance.
D) correlation.
E) c and d.

Name: A statistic that measures how the returns of two risky assets move together is: A) variance. B) standard deviation. C) covariance. D) correlation. E) c and d.
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Question

Quizplus · Accepted Answer

Covariance measures how two assets move together, while correlation standardizes this measure to a range between -1 and 1.

A Statistic That Measures How the Returns of Two Risky