Like the variance, covariance can only take on positive values.

A portfolio is invested in stocks Alpha and Beta with 30% of the portfolio invested in Alpha. The exhibit below illustrates the covariance matrix and expected returns with respect to the portfolio.

The correlation coefficient (r) between alpha and beta is closest to:

Which correlation coefficient best matches the scatterplot shown below?

The variance of a Bernoulli distribution is equal to the probability of failure.

The correlation coefficient is a standardized measure.

Covariance can be calculated for both numerical and categorical variables.

The cumulative probability function of the daily number of customers visiting a retail store during a specific time slot () is given in the table below.

The expected value and variance of the daily number of costumers visiting the store are, respectively,

The correlation coefficient is commutative, meaning Corr(X, Y) = Corr(Y, X).

Consider the joint probability distribution:

• E[X] = 0.45
• E[Y] = 0.5