Which one of these measures the interrelationship between two securities?
A)Standard deviation
B)Variance
C)Beta
D)Covariance
E)Alpha

Question

Quizplus · Accepted Answer

Covariance measures the interrelationship between two securities, specifically how they move together. Standard deviation and variance measure risk, beta measures the volatility of a security in relation to the overall market, and alpha measures the excess return of a security compared to its expected return based on its level of risk.

Which One of These Measures the Interrelationship Between Two Securities