In Words, the Covariance Considers the Probability of Each Scenario

question 63

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.
• E) the variance of the security's return in that scenario and the overall portfolio variance.

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Definitions:

Government Advantages

These are the benefits that accrue to society from effective governance, including stability, security, and public services.

Government Disadvantages

Potential negative consequences associated with the role and functioning of government, including inefficiency, bureaucratic delays, and the risk of corruption.

Categorical Grants

Grants issued by the United States Congress which may be spent only for narrowly defined purposes and are often accompanied by strict compliance requirements.

Block Grants

Financial aid from a central government to local or state governments for general governmental functions with minimal restrictions on usage.