An analyst gathers the following information about an equally weighted portfolio comprised of 500 assets:
- Average variance of the returns of the assets = 0.04
- Average covariance between the returns of the assets = 0.01
The variance of the portfolio returns is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An analyst gathers the following information about an equally weighted portfolio comprised of 500 assets:
Average variance of the returns of the assets = 0.04
Average covariance between the returns of the assets = 0.01
The variance of the portfolio returns is closest to: