True or False: the Variance of the Sum of Two

question 79

True/False

True or False: The variance of the sum of two investments will be equal to the sum of the
variances of the two investments when the covariance between the investments is zero.

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Definitions:

Encumbrance System

A system used in accounting to reserve portions of appropriated funds to avoid overspending, primarily used by governments.

Estimated Commitments

Obligations or contracts that a company is likely to incur in the future based on past or planned activities.

Journal Entry

A record in accounting that represents the recording of a financial transaction in a journal.

Restricted Funds

Funds that are constrained by external parties or legislation for specific purposes and cannot be freely used for any other expenditures.