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Nikkita Chahal
on Oct 20, 2024

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Which of the following statistics cannot be negative?

A) covariance
B) variance
C) E(r)
D) correlation coefficient

Covariance

A measure used to determine how two variables change together, indicating the direction of the relationship.

Variance

A statistical measurement of the dispersion of data points in a data set around the mean, indicating the extent to which the numbers differ from each other.

Correlation Coefficient

A statistical measure that determines the degree to which two variables move in relation to each other, where +1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation.

  • Familiarize yourself with the concepts related to risk and expected returns in portfolio theory.
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Merrick NicholasOct 24, 2024
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