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#reading-9-probability-concepts

Question

Covariance of returns is **[...]** if, when the return on one asset is above its expected value, the return on the other asset is below its expected value.

Answer

negative

(an average inverse relationship between returns)

(an average inverse relationship between returns)

Tags

#reading-9-probability-concepts

Question

Covariance of returns is **[...]** if, when the return on one asset is above its expected value, the return on the other asset is below its expected value.

Answer

?

Tags

#reading-9-probability-concepts

Question

Covariance of returns is **[...]** if, when the return on one asset is above its expected value, the return on the other asset is below its expected value.

Answer

negative

(an average inverse relationship between returns)

(an average inverse relationship between returns)

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**Subject 7. Covariance and Correlation**

e degree to which two random variables are related to each other. Given two random variables, R i and R j , the covariance between the two variables is: Facts about covariance: <span>Covariance of returns is negative if, when the return on one asset is above its expected value, the return on the other asset is below its expected value (an average inverse relationship between returns). Covariance of returns is 0 if returns on the assets are unrelated. Covariance of returns is positive if, when the return on one asset is above its expected value, the return on the othe

e degree to which two random variables are related to each other. Given two random variables, R i and R j , the covariance between the two variables is: Facts about covariance: <span>Covariance of returns is negative if, when the return on one asset is above its expected value, the return on the other asset is below its expected value (an average inverse relationship between returns). Covariance of returns is 0 if returns on the assets are unrelated. Covariance of returns is positive if, when the return on one asset is above its expected value, the return on the othe

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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