The Variance of the Sum of Two Investments Will Be

question 167

True/False

The variance of the sum 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:

Amygdala

A part of the brain involved in processing emotions, including fear, pleasure, and anger.

Hypothalamus

A region of the brain that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, thirst, fatigue, and circadian cycles.

Reflected Appraisal

A process where individuals form perceptions of themselves based on how they believe others view them.

Self-Knowledge

Awareness and understanding of one's own character, feelings, motives, and desires.