Correlation

question 25

Multiple Choice

Correlation

• A) is a measure similar to the standard deviation, but more precise.
• B) may only be positive.
• C) is usually negative for a portfolio with two securities.
• D) measures the degree to which a change in the riskiness of one security causes the risk of another to change.
• E) ranges between −1 and +1.

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Definitions:

15-degree Angle

A measure of rotation that equals one-sixteenth of a complete circle's rotation; it's a small acute angle commonly used in geometry.

60-degree Angle

An angle measuring 60 degrees, often associated with equilateral triangles where all three interior angles are equal.

Productive Cough

A cough that expels mucus or phlegm from the respiratory tract, assisting in clearing the airways.

Short of Breath

The sensation of struggling to breathe or draw deep breaths, often indicative of respiratory conditions, cardiac issues, or exertion.