What Role Does the Standard Deviations of Two Assets Play

question 73

Essay

What role does the standard deviations of two assets play in computation of the expected return of the two asset portfolio?

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Definitions:

Temperament

Characteristic differences among individuals in emotional reactivity, self-regulation, and activity that influence reactions to the environment and are stable and appear early in life.

Biological Influence

Factors related to genetics, physiology, and physical health that affect an individual's behavior, mood, and cognitive functions.

Relational Aggression

A form of aggression in which harm is caused through manipulation or damage to relationships or social status, rather than physical violence.

Social Exclusion

The process or state in which individuals or groups are systematically blocked from rights, opportunities, and resources that are normally available to members of society.