In the Case of a Four-Security Portfolio, There Will Be

question 65

True/False

In the case of a four-security portfolio, there will be 8 covariances.

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Definitions:

Categorical

Pertaining to data or variables that represent categories, qualities, or characteristics without inherent numerical value.

Nominal

Refers to data that can be categorized into named groups that do not imply any rank or order among them.

Nominal

A term describing a scale of measurement where numbers serve as labels for identification or classification, without any quantitative value.

Ordinal

Relating to a category of data measurement levels that reflects the order of the values, but not the difference between them.