In Words, the Covariance Considers the Probability of Each Scenario

question 61

Multiple Choice

In words, the covariance considers the probability of each scenario happening and the interaction between

• A)securities' returns relative to their variances.
• B)securities' returns relative to their mean returns.
• C)securities' returns relative to other securities' returns.
• D)the level of return a security has in that scenario and the overall portfolio return.

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Definitions:

Communicating Through Intermediaries

The process of conveying messages or information through a third party rather than directly between the principal parties.

Formal Hierarchy

A structured organizational system where positions and roles are ranked according to levels of authority and responsibility.

Informal Communications

Communication that occurs outside the formal, official communication channels of an organization, often casually and without strict protocols.

Manipulate Audience Effect

The impact of altering perceptions, opinions, or behaviors of an audience by skillful, unfair, or insidious means.