Portfolio Returns Can Be Calculated as the Unweighted Mean of the Returns

question 42

True/False

Portfolio returns can be calculated as the unweighted mean of the returns on the individual assets in the portfolio.

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Definitions:

Covariance

A measure that indicates the extent to which two variables change together, showing if increases in one variable correspond to increases in another.

Test Scores

Numeric or categorical quantifications that represent an individual's or group's performance on an examination.

Distribution

A statistical term describing how values in a data set are spread out across different categories or ranges.

Third Quartile

The value below which 75% of the data in a data set falls, also known as the upper quartile.