The Variance of a Portfolio Does Not Depend On

question 2

Multiple Choice

The variance of a portfolio does not depend on:

• A)the proportion of the current market value of the portfolio constituted by each security.
• B)the variance of the possible returns of each security.
• C)the total market value of the portfolio.
• D)the correlation between possible returns on the securities held in the portfolio.

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Definitions:

Neurodevelopmental Theory

A framework focusing on how the brain and nervous system grow and develop, influencing cognitive functions and behaviors across the lifespan, often used to understand developmental disorders.

Pedophilia

A form of paraphilia that is also a criminal offence, in which a person has recurrent fantasies or behaviours involving sexual activity with prepubescent children.

Paraphilic Disorders

Psychiatric disorders involving intense sexual fantasies, urges, or behaviors that are atypical or deviant, often causing distress or impairment.

Paraphilic

Pertaining to paraphilias, which are unusual or atypical sexual interests, with some considered disorders based on their nature or effect on others.