The Total Number of Variance and Covariance Terms in Portfolio

question 3

Multiple Choice

The total number of variance and covariance terms in portfolio is N2.How many of these would be (including non-unique) covariance's?

• A)N
• B)N2
• C)N2 - N
• D)N2 - N/2
• E)None of the above.

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Definitions:

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.

Gas Exchange

The biological process by which organisms exchange oxygen and carbon dioxide with their environment, typically involving the respiratory system.

Tidal Volume

The volume of air displaced between normal inhalation and exhalation when extra effort is not applied.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart function and efficiency.