Question
PORTFOLIO AA has TEN securities which are equally weighted in the portfolio. The average variance of the securities returns is 10 and the average covariance
PORTFOLIO AA has TEN securities which are equally weighted in the portfolio. The average variance of the securities returns is 10 and the average covariance of the securities returns is 5.
PORTFOLIO BB has TEN securities which are equally weighted in the portfolio. The average variance of the securities returns is 5 and the average covariance of the securities returns is 10.
Which portfolio has the lower variance?
- PORTFOLIO AA
- PORTFOLIO BB
- The have the same variance
) PORTFOLIO A has TWO securities, where the average variance of the securities returns is 10 and the average covariance of the securities returns is 5.
PORTFOLIO B has TWO securities, where the average variance of the securities returns is 5 and the average covariance of the securities returns is 10.
Which portfolio has the lower variance?
- PORTFOLIO A
- PORTFOLIO B
- The have the same variance
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Dividend Investing For Beginners How To Build Your Investment Strategy Find The Best Dividend Stocks To Buy And Generate Passive Income
Authors: Greg Middleton
1st Edition
B0C1J1WMMJ, 979-8390685440
