The elements along the diagonal of the Variance Covariance matrix are:
A) covariances.
B) security weights.
C) security selections.
D) variances.

Name: The elements along the diagonal of the Variance Covariance matrix are: A) covariances. B) security weights. C) security selections. D) variances.
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Question

Quizplus · Accepted Answer

The elements along the diagonal of the Variance Covariance matrix represent the variances of individual securities. Covariances between securities are represented by the off-diagonal elements.

The Elements Along the Diagonal of the Variance Covariance Matrix