Asked by Christin Kifer on Sep 27, 2024
The covariance between two investments of a portfolio is equal to the sum of the variances of the investments.
Covariance
A measure indicating the degree to which two random variables change together.
Variances
Statistical measures of the dispersion of data points in a dataset, indicating how far each data point in the set is from the mean.
Portfolio
A portfolio of investment vehicles, including equities, fixed income, raw materials, money, and money-like assets, along with mutual funds and ETFs.
- Master the essential principles of portfolio theory within the financial arena.
Learning Objectives
- Master the essential principles of portfolio theory within the financial arena.
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