__________ is the extent to which the returns on two assets move together.
A) Standard deviation
B) Variance
C) Correlation
D) Efficiency
E) Tangency

Question

Quizplus · Accepted Answer

Correlation measures the degree to which two assets move together, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation). A correlation of 0 indicates no correlation between the two assets. Standard deviation measures the dispersion of returns around the mean, while variance is the square of standard deviation. Efficiency and tangency are not related to this concept.

__________ Is the Extent to Which the Returns on Two