The Expected Return of the Sum of Two Investments Will

question 72

True/False

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.

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Definitions:

Radial Symmetry

A symmetrical arrangement of parts around a central axis, as seen in many aquatic organisms, allowing them to interact with their environment from any direction.

Endoskeleton

An internal support structure of the body, found in vertebrates, consisting of bones and cartilages.

Complete Metamorphosis

A type of insect development that includes four distinct life stages: egg, larva, pupa, and adult, with each stage looking entirely different and serving a different role in the life cycle.

Alternation of Generations

A reproductive cycle found in plants and some algae, involving both asexual and sexual phases.