The Measure of Risk for Pairs of Stocks in a Portfolio

question 21

Multiple Choice

The measure of risk for pairs of stocks in a portfolio selection problem is called:

• A)the covariance of the return
• B)the variance of the return
• C)the expected return
• D)decreasing marginal return
• E)None of the above

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Definitions:

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, making them more stable and durable.

Recognizing

The cognitive process of acknowledging and understanding something as being previously seen, known, or experienced.

Mood-Congruent Memory

The tendency to recall memories that are consistent with one's current mood, enhancing mood conformity.

Sad Experiences

Events or situations that induce feelings of sorrow, grief, or unhappiness.