10. When understanding individual assets; risk/return characteristics, which is more important: variance or co-variance and why? a. Variance, since it shows how individual securities' total risk contributes to overall portfolio risk b. Covariance, since it shows how individual securities' total risk contributes to overall portfolio risk c. Variance, since it measures total risk, and covariance only reflects systematic portion d. Covariance, since it only reflects systematic portion, the risk that is priced (as in CAPM model)