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The Expected Return of the Sum of Two Investments Will

question 72

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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.


Definitions:

Representative Sample

A subset of a population carefully selected to reflect the characteristics of the larger group accurately, essential for valid and generalizable research findings.

Voluntary Response Sample

A sample which consists of individuals who choose themselves to participate in a survey, often leading to bias and unrepresentative samples.

Contingency Table

A Contingency Table is a statistical tool used to analyze the relationship between two or more variables, presenting the frequency distribution in a matrix format.

Response Rate

The percentage of people who respond to a certain call-to-action out of the total number of people who were asked to take the action.

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