This Is a Measurement of the Co-Movement Between Two Variables

question 27

Multiple Choice

This is a measurement of the co-movement between two variables that ranges between -1 and +1.

• A) coefficient of variation
• B) correlation
• C) standard deviation
• D) total risk

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Definitions:

Dark Pools

Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.

Anonymity

The condition of being anonymous, where an individual's identity is unknown or concealed.

Large Blocks

Trades involving a significantly large quantity of stocks or securities, typically used by institutional investors.

ECNs

Electronic Communication Networks are automated systems that match buy and sell orders for securities in the financial markets.