Discussion Forum : Nabard & Other Bank Examinations
Question - Which of the following is a statistic that measures how the returns of two risky assets move together?
Options:
A .  Correlation
B .  Standard deviation
C .  Variance
D .  None of the above
Answer: Option A
CORRELATION, IN THE FINANCE AND INVESTMENT INDUSTRIES, IS A STATISTIC THAT MEASURES THE DEGREE TO WHICH TWO SECURITIES MOVE IN RELATION TO EACH OTHER. CORRELATIONS ARE USED IN ADVANCED PORTFOLIO MANAGEMENT, COMPUTED AS THE CORRELATION COEFFICIENT.
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