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#reading-9-probability-concepts
Question
Looking at the dispersion or variance of portfolio return, we see that the way individual security returns move together or [...] is important.
Answer
covary

Tags
#reading-9-probability-concepts
Question
Looking at the dispersion or variance of portfolio return, we see that the way individual security returns move together or [...] is important.
Answer
?

Tags
#reading-9-probability-concepts
Question
Looking at the dispersion or variance of portfolio return, we see that the way individual security returns move together or [...] is important.
Answer
covary
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To analyze a portfolio’s expected return and variance of return, we must understand these quantities are a function of characteristics of the individual securities’ returns. Looking at the dispersion or variance of portfolio return, we see that the way individual security returns move together or covary is important. To understand the significance of these movements, we need to explore some new concepts, covariance and correlation.

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