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The Variance of a Portfolio of Two Investments Will Be

question 192

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


Definitions:

Activity Reinforced

A concept in behaviorism where actions are strengthened by their consequences, leading to increased likelihood of occurrence.

Medical Treatment

A process or series of actions taken to improve health or relieve a medical condition.

Unexpected Misery

A sudden or unforeseen event or situation that causes great distress or suffering.

Secondary Reinforcers

Stimuli that have no inherent value but gain reinforcement power through association with primary reinforcers.

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