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    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
  5. Question
    Which of the Following Equations Is INCORRECT
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Which of the Following Equations Is INCORRECT

Question 10

Question 10

Multiple Choice

Which of the following equations is INCORRECT?


A) Cov(Ri,Rj) = Which of the following equations is INCORRECT? A) Cov(Ri,Rj) =   Σ(Ri - Ri) (Rj - Rj)  B) Var(Rp) = x12Var(R1) + x22Var(R2) + 2X1X2Cov(R1,R2)  C) Corr(Ri,Rj) =   D) Cov(Ri,Rj) = E[(Ri - E[Ri]) (Rj - E[Rj]) ] Σ(Ri - Ri) (Rj - Rj)
B) Var(Rp) = x12Var(R1) + x22Var(R2) + 2X1X2Cov(R1,R2)
C) Corr(Ri,Rj) = Which of the following equations is INCORRECT? A) Cov(Ri,Rj) =   Σ(Ri - Ri) (Rj - Rj)  B) Var(Rp) = x12Var(R1) + x22Var(R2) + 2X1X2Cov(R1,R2)  C) Corr(Ri,Rj) =   D) Cov(Ri,Rj) = E[(Ri - E[Ri]) (Rj - E[Rj]) ]
D) Cov(Ri,Rj) = E[(Ri - E[Ri]) (Rj - E[Rj]) ]

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