For a Portfolio of N-Stocks, the Formula for Portfolio Variance

question 18

Multiple Choice

For a portfolio of N-stocks, the formula for portfolio variance contains

• A)N covariance terms.
• B)N(N - 1)/2 different covariance terms.
• C)N² covariance terms.
• D)N - 1 covariance terms.

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Definitions:

Bulleted Items

A list format that presents a series of items or points in a clear, concise manner, often used to highlight key information.

Numbered Items

A method of organizing or listing information in a sequence, using numbers for each entry.

Plateau Of Sales

A period during which the sales volume of a product or service remains consistently stable, without significant increase or decrease.

Paragraph List

A formatted list that presents information in separately numbered or bulleted paragraphs, often to structure or highlight key points.