The Major Difference Between the Correlation Coefficient and the Covariance

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 an arithmetic measure.