Examlex
If X and Y are two variables with E(XY)= 10.56,E(X)= 4.22,and E(Y)= 5.34,then COV(X,Y)= 1.0.
Coefficient of Variation
A statistical measure that assesses the relative variability of data points around the mean, indicating the level of dispersion.
Standard Deviation
A statistical measure of the dispersion or variability of a set of values, often used in finance to quantify the risk associated with an investment's return.
Perfectly Positively Correlated
A relationship between two variables where they move in the same direction at the same time with a correlation coefficient of +1.
Portfolio Risk
The potential for loss or underperformance across a collection of investments held by an individual or institution.
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