For a Highly Diversified Equally Weighted Portfolio with a Large

question 82

Multiple Choice

For a highly diversified equally weighted portfolio with a large number of securities, the portfolio variance is:

• A)the average covariance.
• B)the average expected value.
• C)the average variance.
• D)the weighted average expected value.
• E)the weighted average variance.

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Definitions:

Motorized Warfare

The use of motor vehicles such as tanks, trucks, and armored vehicles in combat operations to enhance mobility, speed, and firepower.

Enigma Machine

A device used by the German military during World War II for encrypting communications, which was later deciphered by Allied cryptologists.

Ghettos

Urban areas historically designated for specific ethnic or religious communities, often associated with restrictions, isolation, and socioeconomic hardship.

Slave Laborers

Individuals who were forced to work without pay, often under harsh conditions, as a result of being enslaved.