The Correlation Coefficient Between Two Assets Is Equal to ________

question 41

Multiple Choice

The correlation coefficient between two assets is equal to ________.

• A)their covariance divided by the product of their variances
• B)the product of their variances divided by their covariance
• C)the sum of their expected returns divided by their covariance
• D)their covariance divided by the product of their standard deviations

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Definitions:

Media Divergence

The trend of media platforms and outlets becoming more varied and specialized, catering to niche audiences and interests.

Advertising Spillover

The effect that advertising for one product or brand has on another due to overlap in customer base or market.

Cord-Cutting

The trend of consumers cancelling or forgoing traditional cable or satellite television services in favor of streaming or Internet-based alternatives.

Streaming Services

Platforms that deliver content over the internet, allowing users to watch TV shows, movies, and other media without downloading them.