Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
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. |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns
CFA® 2024 Level I Curriculum, Volume 1, Module 5.