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The Expected Return of the Sum of Two Investments Will

question 72

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The expected return of the sum of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.


Definitions:

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A characteristic cluster of withdrawal symptoms that results from sudden decrease in an addictive drug’s level of usage.

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A technique that teaches individuals to control physiological processes, such as heart rate or muscle tension, through the use of monitoring devices.

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A phase of sleep characterized by rapid eye movement (REM) and physiological similarities to being awake, often associated with vivid dreaming.

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