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Basic Question 13 of 23
Standardizing the covariance of returns between two assets by the individual standard deviations yields the ______.
B. covariance
C. variance
D. correlation coefficient
A. standard deviation
B. covariance
C. variance
D. correlation coefficient
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data
calculate and interpret portfolio standard deviation
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated
CFA® 2025 Level I Curriculum, Volume 2, Module 1.