The Major Difference Between the Correlation Coefficient and the Covariance

question 49

Multiple Choice

The major difference between the correlation coefficient and the covariance is that the correlation coefficient:

• A)can be positive,negative,or zero,whereas the covariance is always positive.
• B)measures the relationship between securities,whereas the covariance measures the relationship between a security and the market.
• C)is a relative measure showing association between security returns,whereas the covariance is an absolute measure showing association between security returns.
• D)is a geometric measure,and the covariance is a statistical measure.

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Definitions:

Photomontage

A composition made by pasting together pictures or parts of pictures, especially photographs. See also collage.

Marcel Duchamp

A French-American artist associated with Dadaism and Surrealism, known for his innovative contributions to art, including the concept of the readymade.

Hannah Höch

Hannah Höch was a German Dada artist known for her work in photomontage, creating insightful and often critical pieces related to societal issues.

Unique Forms

Distinctive or one-of-a-kind shapes, patterns, or arrangements that set something apart from the rest.