If the Covariance Between Two Investments of a Portfolio Is

question 246

True/False

If the covariance between two investments of a portfolio is zero,the variance of the portfolio will be equal to the sum of the variances of the investments.

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Definitions:

Aggregate Consumption

The total amount of goods and services consumed in an economy over a specific period.

Consumption Function

A relationship in economic terms between the gross national income and the aggregate consumption level.

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits, over a specific period.

Aggregate Consumption

The total spending by households on goods and services within an economy during a specific period.