Author Question: The covariance between two investments of a portfolio is equal to the sum of the variances of the ... (Read 106 times)

misspop

  • Hero Member
  • *****
  • Posts: 540
The covariance between two investments of a portfolio is equal to the sum of the variances of the investments.
  Indicate whether the statement is true or false

Question 2

A portfolio expected return E(Rp) of 3 stocks with the quantities w1 = .40, w2 = .50, w3 = .10, E(R1) = .10, E(R2) = .15, and E(R3) = .02 is equal to 0.117.
  Indicate whether the statement is true or false



juliaf

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

F

Answer to Question 2

T



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

For a complete list of videos, visit our video library