Both the covariance and the correlation coefficient measure the extent to which the returns on securities move together. What is the relationship between the two statistical measures? Why is the correlation coefficient a more convenient measure?
Both the covariance and the correlation coefficient measure the extent to which the returns on securities move together. What is the relationship between the two statistical measures? Why is the correlation coefficient a more convenient measure?
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Related Book For 
Fundamentals of Investments
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
ISBN: 978-0132926171