The Variance of a Portfolio of Risky Securities

question 20

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 options are correct.

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Definitions:

Time Management

Making effective use of available time.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the desired goals.

Creative Appraisal

The evaluation process of assessing an individual's originality, innovation, and ability to generate novel ideas or solutions.

Productivity

The ratio of an organization’s inputs, or its resources, to its outputs, or the goods and services it produces.