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

question 4

Multiple Choice

If you want to know the portfolio standard deviation for a three share 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 shares

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Definitions:

Response Is Reinforced

A process in learning where the likelihood of a behavior's occurrence is increased by following it with a positive outcome or reward.

Monetary Winnings

Funds or gains received as a result of winning a game, competition, bet, or lawsuit.

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, often used in behavior modification.

State Lottery Tickets

Tickets sold by a governmental entity, allowing participants a chance to win monetary prizes through a random drawing process.