If the Covariance Between Two Investments Is Zero,the Variance of the Sum

question 131

True/False

If the covariance between two investments is zero,the variance of the sum of the two investments will be equal to the sum of the variances of the investments.

---

Definitions:

Charter of Rights

A formal document outlining the fundamental rights and freedoms guaranteed to individuals, usually established by a governing body.

Constitution

A set of fundamental principles or established precedents according to which a state or other organization is governed.

Liberal Democracy

A political ideology and form of government characterized by fair, free, and competitive elections, along with the protection of civil liberties.

Formal Democracy

A system of government where official, structured, and institutionalized procedures are followed to elect representatives and make policy decisions.