Return Variance on a Portfolio with Many Assets Depends More

question 26

True/False

Return variance on a portfolio with many assets depends more on the variances of the individual assets in the portfolio than on the covariances between the individual assets.

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Definitions:

Density

A measure of how much mass is present per given volume of a substance.

Meters Per Second

A unit of speed or velocity in the International System of Units (SI), indicating how many meters an object moves in one second.

Quantitative Data

Data that are numeric and typically visualized and analyzed using data tables, calculations, equations, and graphs.

Quantitative Data

Information that can be measured and written down with numbers, often used for statistical analysis or scientific research.