Which of the following is a measurement of the co-movement between two variables that ranges between -1 and +1?
A)coefficient of variation
B)correlation
C)standard deviation
D)total risk

Question

Quizplus · Accepted Answer

The measurement that ranges between -1 and +1 and reflects the co-movement between two variables is the correlation coefficient. It is a standardized measure of the degree to which two variables are related, with a positive correlation indicating that the variables move in the same direction, a negative correlation indicating that they move in opposite directions, and a correlation near zero indicating weak or no relationship. The coefficient of variation is a measure of relative risk and variability, the standard deviation is a measure of the dispersion of a data set, and total risk can refer to various types of risk in finance or business.

Which of the Following Is a Measurement of the Co-Movement