If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________. Group of answer choices positive covariance, covariance will be negative negative covariance, covariance will be zero positive covariance, standard deviation will be negative negative covariance, covariance will be positive

If two returns are positively related to each other, they will have a , and if they are negatively related to each other, the ______. Group of answer choices positive covariance, covariance will be negative negative covariance, covariance will be zero positive covariance, standard deviation will be negative negative covariance, covariance will be positive

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 16P: Suppose that you are given a decision situation with three possible states of nature: s1, s2, and...

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If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________. Group of answer choices positive covariance, covariance will be negative positive covariance, standard deviation will be negative negative covariance, covariance will be zero negative covariance, covariance will be positive This type of risk affects a large number of assets, each to a greater or lesser degree. Group of answer choices systematic risk unsystematic risk idiosynchratic risk principle of diversification True/False. The Dividend Discount Model can be applied to firms that do not pay dividends. Group of answer choices True False
Which of the following indicates that two variables tend to move in the same direction? a.negative covariance b.probability c.covariance d.positive covariance
The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b. Between 0 and +2, inclusive c. Between 0 and +1, inclusive d. Between minus infinity and plus infinity
Consider two random variables X and Y. The covariance between these two variables is 1.00. We can conclude that there is a perfect positive linear relationship between the two variables. Is this statement true or false? If your answer is false, give reasons.
The value of a correlation is reported to be r = 0.25. How is this interpreted?
The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation? A) It is the expected change in the independent variable for a one-unit change in the dependent variable OB) It is the significance level for the test OC) It is the expected change in the dependent variable for a one-unit change in the independent variable OD) The confidence interval
The following table provides a probability distribution for the random variable y. a. Compute E(y). b. Compute Var(y) and .
Suppose that you are given a decision situation with three possible states of nature: s1, s2, and s3. The prior probabilities are P(s1) = 0.2, P(s2) = 0.5, and P(s3) = 0.3. With sample information I, P(I|s1) = 0.1, P(I|s2) = 0.05, and P(I|s3) = 0.2. Compute the revised (or posterior) probabilities: P(s1|I), P(s2|I), and P(s3|I).
Find correlation for two returns.
Which of the following statement is true of a covariance matrix? a. The diagonal values are volatilities b. The non-diagonal values are covariances c. The non-diagonal values are coefficients of variations d. none of the above
Could you help me with C? And did i get the coefficient of variation correct?
Is there a difference between arithmetic and geometric average returns? Is it true that they converge or not?