Author Question: The covariance between two investments of a portfolio is equal to the sum of the variances of the ... (Read 108 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?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

For a complete list of videos, visit our video library