The Variance of a Portfolio of Risky Securities

question 70

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 the above.

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Definitions:

Sclera

The white, opaque, fibrous outer covering of the eyeball, providing protection and form.

Choroid

A vascular layer of the eye containing connective tissue, located between the retina and the sclera, playing a key role in providing oxygen and nutrients to the outer layers of the retina.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for a large part of the eye's focusing power.

Tactile Corpuscle

A sensory receptor located in the dermal papillae, particularly sensitive to light touch; also referred to as a Meissner's corpuscle.