The Expected Return of a Portfolio of Two Investments Will

question 123

True/False

The expected return of a portfolio of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.

---

Definitions:

Payment of a Voucher

The process of settling a voucher, which is a document evidencing a transaction and authorizing payment.

Company's Accounts

The financial records that track the financial transactions and the financial position of a company, typically including the balance sheet, income statement, and cash flow statement.

Accounts Payable

Liabilities of a business that are due but unpaid to creditors for goods and services provided.

Debit Memo

A document issued by a buyer to a seller indicating an adjustment or decrease in the amount that the buyer owes to the seller, usually due to returns or refunds.