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标题: Reading 11- LOS A (Part 1): Q5 [打印本页]

作者: cfaedu    时间: 2008-4-1 12:23     标题: [2008] Session 3 - Reading 11- LOS A (Part 1): Q5

5.Which of the following statements about covariance and correlation is least accurate?

A)   A zero covariance implies a zero correlation.

B)   A positive covariance is indicated by an upward sloping relation in the points on the scatter plot of the two variables.

C)   The covariance and correlation are always the same sign, positive or negative.

D)   There is no relation between the sign of the covariance and the correlation.


作者: cfaedu    时间: 2008-4-1 12:23

The correct answer was D)

The correlation is the ratio of the covariance to the product of the standard deviations of the two variables. Therefore, the covariance and the correlation have the same sign.






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