_______ is a measure of the tendency for two securities to move in the same direction.
A) Standard deviation.
B) Alpha
C) Variance
D) Covariance
E) The risk premium

Question

Quizplus · Accepted Answer

Covariance measures the degree to which two securities move together. A positive covariance indicates that the two securities tend to move in the same direction, while a negative covariance indicates that they move in opposite directions.

_______ Is a Measure of the Tendency for Two Securities