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Question
The major difference between the correlation coefficient and the covariance is that:the correlation coefficient can be positive, negative or zero while the covariance is always positivethe correlation coefficient measures relationship between securities and the covariance measures relationships between a security and the marketthe correlation coefficient is a relative measure showing association between security returns and the covariance is an absolute measure showing association between security returnsthe correlation coefficient is a geometric measure and the covariance is a statistical measure
Answer
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