Q267
Which of the following statements regarding covariance is correct?
A.
Covariance always lies in the range -1 to +1
B.
Covariance, because it involves a squared value, must always be a positive number (or zero)
C.
Low covariance among returns for different securities leads to high portfolio risk
D.
Covariance can take on positive, negative, or zero values
AnswerAnswer: Option D
Solution
Answer: Option D
No explanation is given for this question Let's Discuss on Board