Multiple Choice
Covariance measures the interrelationship between two securities in terms of:
A) both expected return and direction of return movement.
B) both size and direction of return movement.
C) the standard deviation of returns.
D) both expected return and size of return movements.
E) the correlations of returns.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: A stock with a beta of zero
Q1: According to the CAPM,the expected return on
Q3: GenLabs has been a hot stock the
Q4: The dominant portfolio with the lowest possible
Q5: A portfolio is entirely invested into Buzz's
Q6: If the covariance of stock 1 with
Q7: The total number of variance and covariance
Q10: You want your portfolio beta to be
Q11: Total risk can be divided into:<br>A) standard
Q40: Why are some risks diversifiable and some