The variance of a portfolio of risky securities
A. is a weighted sum of the securities' variances.
B. is the sum of the securities' variances.
C. is the weighted sum of the securities' variances and covariances.
D. is the sum of the securities' covariances.
E. None of the options are correct.
C. is the weighted sum of the securities' variances and covariances.
The variance of a portfolio of risky securities is a weighted sum taking into account both the variance of the individual securities and the covariances between securities.
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a. required to be reported on the balance sheet b. required to be reported on the income statement c. required to be reported on the statement of cash flows d. not required to be reported on any statement
Wage compression can weaken the desired link between pay and performance, creating significant ______ on the part of long-term employees.
A. equity B. satisfaction C. dissatisfaction D. compression
The reasons for refusing credit should always be clearly explained
Indicate whether the statement is true or false
If some expense items are related to your income, and your income increases above budgeted amounts, you can expect
A) favorable variances in both income and expense accounts. B) budgeted savings to remain about the same. C) favorable income variances and unfavorable variances in related expenses. D) savings will decrease.