Question

The correlation coefficient between two assets equals _________. their covariance divided by the product of their variances the product of their variances divided by their covariance the sum of their expected returns divided by their covariance their covariance divided by the product of their standard deviations

Answer 1

I cannot see the options ??

Step-by-step explanation:

Answer 2

The correct answer is: co-variance divided by the product of their standard deviations.

Step-by-step explanation:

A correlation coefficient can be defined as the statistical measure that calculates the strength of the relationship between two variables. The values range from -1 to +1. Zero correlation implies no relationship.

The correlation coefficient between the two assets shows the strength of the relationship between the relative movements of the value of two assets. It is equal to covariance divided by the product of the assets standard deviations.