The Expected Return of the Sum of Two Investments Will

question 72

True/False

The expected return of the sum of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.

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Definitions:

Obsessive-compulsive Disorder

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and behaviors (compulsions) that one feels the urge to repeat over and over.

Generalized Anxiety Disorder

Generalized Anxiety Disorder is a mental health condition characterized by persistent and excessive worry about various aspects of daily life, often accompanied by physical symptoms like fatigue, restlessness, or sleep disturbances.

Specific Phobia

An irrational fear and avoidance of a particular object, situation, or activity that is generally not harmful.

Social Anxiety Disorder

A long-term psychological disorder where engaging in social interactions triggers unreasonable fear and anxiety.