The variance of a stock portfolio depends on the variances of each individual stock in the portfolio

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The variance of a stock portfolio depends on the variances of each individual stock in the portfolio and also the co-variances among the stocks in the portfolio. If you have five stocks, how many unique co-variances (excluding variances) must you use in order to compute the variance of return on your portfolio? (Recall that the covariance of a stock with itself is the stock's variance.)
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Quantitative Investment Analysis

ISBN: 978-1119104223

3rd edition

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

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