Question

While calculating risk of a portfolio of 9 securities, the number of variance terms will be:- a. 10 b. 90 c. 45 d. 9 ​

Answer 1

Answer:

Portfolio variance = w 12 σ 12 + w 22 σ 22 + 2w 1 w 2 Cov 1,2.

b) 90