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The Total Number of Variance and Covariance Terms in a Portfolio

question 128

Multiple Choice

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


Definitions:

Self-fulfilling Prophecy

A psychological phenomenon in which an individual's or group's belief or expectation brings about its own fulfillment, either directly or indirectly, influencing behavior and outcomes.

Preexisting Expectations

Assumptions or beliefs that one has before encountering new information or experiences.

Internal Attributions

The tendency to explain one's behavior or the behavior of others based on internal, personal characteristics rather than external situations.

Behavior

The actions, reactions, or conduct of an individual, often studied in psychology to understand individuals and groups.

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