CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The variance of a three-stock portfolio contains ______ individual variance terms and ______ unique covariance terms.

A. 3; 3
B. 3; 6
C. 6; 6
D. 3; 9
E. 6; 9
Correct Answer: A

User Contributed Comments 4

User Comment
myanmar 3 companies A,B,C
three possible covariance outcomes:
AB
AC
BC
surob the formula to compute covariance count - n(n-1)/2
ljamieson nC2 = n(n-1)/2
Phlipsen thanks ljamieson
You need to log in first to add your comment.