Which of the following would be considered a random variable:
A)expected value.
B)correlation coefficient between two assets
C)one-period rate of return for an asset.
D)beta.

Question

Quizplus · Accepted Answer

A random variable is a variable whose value is unknown or uncertain. The one-period rate of return for an asset is uncertain and can take a range of values, making it a random variable. The expected value and beta are not random variables as they are known and constant values. The correlation coefficient is also not a random variable as it describes the relationship between two known variables.

Which of the Following Would Be Considered a Random Variable