Question
The variance of a portfolio comprised of many securities isprimarily dependent upon the: A) variances of the securities heldwithin the portfolio. B) beta of the
The variance of a portfolio comprised of many securities isprimarily dependent upon the:
A) variances of the securities heldwithin the portfolio.
B) beta of the portfolio.
C) portfolio's correlation with themarket.
D) covariance between the overallportfolio and the market.
E) covariances between the individualsecurities.
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
