The Covariance Between Two Investments Is Equal to the Sum

question 26

True/False

The covariance between two investments is equal to the sum of the variances of the investments.

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Definitions:

Descriptive Data

Statistical calculations and summaries that describe the main features of a dataset, often through measures of central tendency and variability.

Variability

Refers to the extent to which data points in a dataset differ from each other and from the mean.

Distribution

The way in which values of a variable or a set of variables are spread or dispersed across a range.

Variability

The extent to which data points in a data set differ from each other and from the mean of the dataset.