Sumeet knows that the covariance in the return on two assets is 0 0025 Without knowing the expected return of the two assets, explain what that covariance means ...

The covariance measure is dependent on the expected return of the two assets ...

Sumeet knows that the covariance in the return on two assets is 0.0025. Without knowing the expected

Question:

Sumeet knows that the covariance in the return on two assets is –0.0025. Without knowing the of the two assets, explain what that covariance means.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...