The Measure of Risk for Pairs of Stocks in a Portfolio

question 5

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 choices is correct.

---

Definitions:

Cerebral Cortex

The outer layer of the cerebrum, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Cochlea

A spiral-shaped cavity forming part of the inner ear, instrumental in converting sound vibrations into nerve impulses.

Suggestibility

The degree to which a person is inclined to accept and incorporate ideas or beliefs suggested by others.

Fast-Acting

A term describing something that takes effect or produces results quickly.