Is co-variance a measure of relative risk, or absolute risk? A relative risk, because it is linked with the performance(s) other assetts). B absolute risk, because it is not linked with the performance(s) other asset(s). © relative risk, because it measures the co-movement of two assets. (D absolute risk, though it measures the co-movement of two assets.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.9P
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Is co-variance a measure of relative risk, or absolute risk?
A relative risk, because it is linked with the performance(s) other asset(s).
B absolute risk, because it is not linked with the performance(s) other asset(s).
relative risk, because it measures the co-movement of two assets.
absolute risk, though it measures the co-movement of two assets.
Transcribed Image Text:Is co-variance a measure of relative risk, or absolute risk? A relative risk, because it is linked with the performance(s) other asset(s). B absolute risk, because it is not linked with the performance(s) other asset(s). relative risk, because it measures the co-movement of two assets. absolute risk, though it measures the co-movement of two assets.
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