7-28 Select the INCORRECT the following: statement from among a. Under the Markowitz formulation, a portfolio of 30 securities would have 870 covariances. b. Under the Markowitz formulation, a portfolio of 30 securities would have 30 variances in the variance-covariance matrix. c. Under the Markowitz formulation, a portfolio of 30 securities would have 870 terms in the variance-covariance matrix. d. Under the Markowitz formulation, a portfolio of 30 securities would require 435 unique covariances to calculate portfolio risk.
7-28 Select the INCORRECT the following: statement from among a. Under the Markowitz formulation, a portfolio of 30 securities would have 870 covariances. b. Under the Markowitz formulation, a portfolio of 30 securities would have 30 variances in the variance-covariance matrix. c. Under the Markowitz formulation, a portfolio of 30 securities would have 870 terms in the variance-covariance matrix. d. Under the Markowitz formulation, a portfolio of 30 securities would require 435 unique covariances to calculate portfolio risk.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:7-28 Select the INCORRECT
the following:
statement from among
a. Under the Markowitz formulation, a portfolio
of 30 securities would have 870 covariances.
b. Under the Markowitz formulation, a portfolio
of 30 securities would have 30 variances in
the variance-covariance matrix.
c. Under the Markowitz formulation, a portfolio
of 30 securities would have 870 terms in the
variance-covariance matrix.
d. Under the Markowitz formulation, a portfolio
of 30 securities would require 435 unique
covariances to calculate portfolio risk.
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