The Variance of the Sum of Two Investments Will Be

question 167

True/False

The variance of the sum of two investments will be equal to the sum of the variances of the two investments plus twice the covariance between the investments.

---

Definitions:

Selective Distribution

A distribution strategy where a product is sold at a limited number of outlets in geographical areas to maintain exclusivity or control over the brand.

Intensive Distribution

A strategy where a company sells its products in as many outlets as possible to maximize coverage and sales.

Personal Pen

A writing instrument chosen or designed to meet an individual's specific preferences or needs, often considered personal property.

Exclusive Distribution

A market strategy where a manufacturer restricts the sale of their product to a single distributor or a limited number of sellers.