Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 2 of 6
Consider the following covariance matrix for 3 different variables, X, Y, and Z:
B. 7, 9, 5
C. 4, 9, 7
What are the values for Cov(Y,Z), Cov(Z,X), and Cov(Y,X)?
A. 9, 5, 7
B. 7, 9, 5
C. 4, 9, 7
User Contributed Comments 6
| User | Comment |
|---|---|
| chamad | Remember:Cov are symetric around The Diagonale |
| abhinavkapoor | can somebody please explain it? |
| abhinavkapoor | GOT IT. |
| dmfz | This makes no sense |
| idzani | More like an IQ test than comprehension test lol |
| ashish100 | I'll give one example then move on. Cov (Y,Z) = Cov (Z,Y) Cov (Z,Y) = 7. This is given. Therefore Cov (Y,Z) = 7 as well. Do the same for the rest. |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns
CFA® 2025 Level I Curriculum, Volume 1, Module 5.