The Variance of a Portfolio of Risky Securities

question 44

Multiple Choice

The variance of a portfolio of risky securities

• A) is a weighted sum of the securities' variances.
• B) is the sum of the securities' variances.
• C) is the weighted sum of the securities' variances and covariances.
• D) is the sum of the securities' covariances.
• E) none of these.

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Definitions:

Multi-Segment Approach

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