Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 2 of 2
The following table represents the estimated returns for two motor vehicle production brands - ABC and XYZ, in 3 industrial environments: Strong (50% probability), average (30% probability) and weak (20% probability).
Given the above joint probability function, the covariance between ABC and XYZ returns is closest to:
User Contributed Comments 0
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret the covariance and correlation of portfolio returns using a joint probability function for returns
CFA® 2024 Level I Curriculum, Volume 1, Module 5.