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A Small, Steep-Sided Volcano That Consists of Solidified Magma Fragments

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A small, steep-sided volcano that consists of solidified magma fragments and rock debris is a


Definitions:

Covariance

A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns move together. A negative covariance means they vary inversely.

Variance

A measure of the dispersion of a random variable. Equals the expected value of the squared deviation from the mean.

Fairly-Priced Securities

Securities that are believed to be priced appropriately according to their risk level and the expected rate of return.

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