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:

Taxonomy

Taxonomy is the science of describing, naming, and classifying species of living or fossil organisms.

Monophyletic

Describes a group of organisms that form a clade.

Lemurs

A group of primates native to Madagascar, characterized by their large eyes, nocturnal habits, and varied social structures.