Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is the meaning of the variance or its meaning

What is the meaning of the variance or its meaning fro returns and its use use...

90.2K

Verified Solution

Question

Finance

What is the meaning of the variance or its meaning fro returnsand its use use in creating portfolios...?

How risk can be measured using the variance of a stock'sreturn?

Include Sources... Base answers upon the work of Markowitz andSharpe/Litner..

Answer & Explanation Solved by verified expert
4.1 Ratings (852 Votes)
Variance of a portfolio is nothing but the squared weight of each security by the corresponding variance of the security and add two multiplied by the weighted average of the securities multiplied by the covariance between the securities This helps in    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is the meaning of the variance or its meaning fro returnsand its use use in creating portfolios...?How risk can be measured using the variance of a stock'sreturn?Include Sources... Base answers upon the work of Markowitz andSharpe/Litner..

Other questions asked by students

Q

The Fly-By-Night Corp. paid a dividend of $2.85 last year and the dividend is expected to...

Finance
Q

The following data was taken in a GC experiment: tr of air (non retained) = 33s,...

Chemistry
Q

How is violence against the LGB community tied to the construction of gender?

Psychology
Q

Compare and contrast plastic injection molding and vacuum forming or molding

Mechanical Engineering
Q

is flowing in a tube as shown in figure Area of section 1 is double...

Physics
Q

Two object P and Q of masses 2m and m are connected to two springs...

Physics
Q

Die 3 A 25000 loan is to be paid off over 5 years with bi...

Basic Math
Q

Dane Inc has forecast purchases on account to be $319,000 in...

Accounting
Q

The cost of an asset is $ 1010000?, and its residual value is $ 220000....

Accounting
Q

Effect of Omitting Adjusting Entry At March 31, the end of the first month of...

Accounting
Q

Which account would be best suited to Artificial Intelligence? Taxes ...

Accounting
Q

Exercise 10-20A Effective interest amortization of a bond discount LO 10-6 On January 1,...

Accounting