Examlex

Solved

The Fundamental Calculations That Underpin Principal Component Analysis (Correlation Matrices)

question 12

Multiple Choice

The fundamental calculations that underpin principal component analysis (correlation matrices) are similar to which other statistical functions?


Definitions:

Returns

The profit or loss generated on an investment over a specific period.

Credit Default Swaps

Credit default swaps are financial derivative contracts that transfer the risk of default on a debt from one party to another, with the buyer of the swap making payments to the seller and receiving compensation if the debt instrument defaults.

Protection Payment

Payments made to ensure a financial position is safeguarded against losses.

Borrowing

The act of obtaining funds from a lender with the obligation to repay the borrowed amount plus interest at a later date.

Related Questions