The Variance of a Portfolio of Two Investments Will Be

question 39

True/False

The variance of a portfolio of two investments will be equal to the sum of the variances of the two investments plus twice the covariance between the investments.

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Definitions:

Paleoanthropological

Relating to the study of the origins and predecessors of the present human species, focusing on the fossil record and artifacts.

Ethnology

The comparative study of cultures and peoples, including their customs, habits, and mutual differences.

Culture Groups

Clusters of individuals who share the same cultural practices, norms, and values, distinguishing them from other groups within a larger society.

Globalization

The process of increased interconnectedness and interdependence among countries globally, through trade, technology, culture, and politics.