The relevant correlation for: a) Systematic Risk is between and . b) Total Risk is between...
The relevant correlation for:
a) Systematic Risk is between and .
b) Total Risk is between and .
Homework Answers
Correlation is a statistical measure that states whether two variables tend to be related and the strength of the relation.
For both a) Systematic Risk and b) Total Risk, correlation is a value between -1 and +1
A correlation value of -1 indicates a strong negative relationship while a value of +1 indicates a strong positive relationship.
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