__________ is a statistical measure of the degree to which two variables (e.g. securities' returns) move together.
A) Covariance
B) Variance
C) Skewness
D) Coefficient of variation
E) Tangency

Question

Quizplus · Accepted Answer

Covariance measures the degree to which two variables move together. It can help investors understand the relationship between securities' returns and can be useful in portfolio management. Variance measures the spread of data around the mean, but it does not specifically measure the relationship between two variables. Skewness measures the degree of asymmetry in the distribution of a variable. Coefficient of variation measures the relative variability of a variable in relation to its mean. Tangency is not a statistical measure.

__________ Is a Statistical Measure of the Degree to Which