FRM-Quants

anbu.edu
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FRM-Quants

Postby anbu.edu » Wed Mar 20, 2013 1:32 am

The correlation coefficient for two dependent random variables is equal to:

A) the product of the standard deviations for the two random variables divided by the covariance.
B) the covariance between the random variables divided by the product of the variances.
C) the covariance between the random variables divided by the product of the standard deviations.
D) the absolute value of the difference between the means of the two variables divided by the product of the variances.

If the ans is C then is that applicable for independent variable only right?

content.pristine
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FRM-Quants

Postby content.pristine » Thu Mar 21, 2013 11:21 am

C is correct whether the random variables and dependent or independent.


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