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