Which of the Following Formulas Is INCORRECT

question 1

Multiple Choice

Which of the following formulas is INCORRECT?

• A)Variance of an Equally Weighted Portfolio = (1 - )(Average Variance of Individual Stocks)+ (Average Covariance Between the Stocks)
• B)Variance of a portfolio = Cov( , )
• C)Variance of a portfolio = Cov( , )
• D)Variance of a portfolio = Cov( , )

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Definitions:

Edematous

Describing tissue that is swollen due to the accumulation of excess fluid in the body’s tissues.

Hydrocele

A fluid-filled sac surrounding a testicle that causes swelling in the scrotum, common in newborns.

Inguinal Hernia

A condition where tissue, such as part of the intestine, protrudes through a weakened spot in the abdominal muscles near the groin area.

Strabismus

A condition where the eyes do not properly align with each other when looking at an object, commonly known as crossed eyes.