The elements in the off-diagonal positions of the variance/covariance matrix are:
A)covariances.
B)security selections.
C)variances.
D)security weights.
E)None of the above.

Name: The elements in the off-diagonal positions of the variance/covariance matrix are: A)covariances. B)security selections. C)variances. D)security weights. E)None of the above.
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Question

Quizplus · Accepted Answer

The off-diagonal elements in a variance/covariance matrix represent the covariances between the different securities in the portfolio.

The Elements in the Off-Diagonal Positions of the Variance/covariance Matrix