Question: Explain whether the following statement is correct or incorrect: In measuring the total risk of a portfolio, both variances and covariances are equally important. If

Explain whether the following statement is correct or incorrect:

In measuring the total risk of a portfolio, both variances and covariances are equally important.

If a portfolio consists of 100 securities, what are the numbers of total variance and covariance terms needed in the portfolio variance-covariance matrix?

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