If You Want to Know the Portfolio Standard Deviation for a Three-Stock

question 33

Multiple Choice

If you want to know the portfolio standard deviation for a three-stock portfolio, you will have to ________.

• A) calculate two covariances and one trivariance
• B) calculate only two covariances
• C) calculate three covariances
• D) average the variances of the individual stocks

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Definitions:

Motivation

Motivation is the internal drive or external stimulus that prompts individuals to act or behave in a particular manner towards achieving a goal.

Consumer Involvement

Refers to the level of interest and personal relevance a consumer feels towards a particular product or service.

Involvement

The degree of interest and attention that an individual devotes to a particular activity, issue, or item, often affecting decision-making processes.

Motivation

The psychological process that arouses and directs goal-oriented behavior.