Lol, I set the post to attract those who will come come to laught at my ignorance.
I forgot this Level II material, my books are in a different country. I know how to calculate it, however I just need someone to refresh me on practical meening of it.
I saw I CFAI text an example that said correlation bettwen US bonds and French bonds is 0.4, which mathmaticlly seems to be is also the correlation bettwen French bonds and US bonds, ie cor(x,y) = cor(y, x)
Does it imply that for change in return on US, return on frensh will change by 40%, of it simply sais that maybe 40% of the change of one can be explained by the other, with a Beta like measure (slope of regression) measuring the relationship
WOuld appreciate a nice refresher on the topic, no need for complex, just enough to get me on Level III, i will redo teh level II material later