Chapter 3 Terms Flashcards
1
Q
Covariance
A
Degree to which two assets move together
2
Q
Covariance Formula
A
Product of both asset’s stdev * correlation between the two
3
Q
What geometric mean calculates
A
Time-weighted return
4
Q
Measures short-term risk
A
Value at risk
5
Q
Measure long-term risk
A
Beta and standard deviation
6
Q
Risk
A
Uncertainty of future outcomes
7
Q
Total Return Formula
A
Yield + Price Change
8
Q
Variance
A
Standard Distribution Squared
9
Q
A
