The Variance of a Portfolio Would Can Be Calculated by Finding

question 112

True/False

The variance of a portfolio would can be calculated by finding the variances of the individual components of the portfolio and finding the weighted average of those variances.

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Definitions:

Inhibit

To hold back, hinder, or restrain an action, process, or behavior.

Creativity

The ability to produce new and valuable ideas.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method or decision.

Likelihood

Refers to the probability or chance of an event occurring.