Variance A + variance B and portfolio variance
From Variance (A+B) = variance A + variance B + 2 covariance(x,y)
and the portfolio variance consisting of stock A and B equally weighted.
= weight2( variance A) + weight2(variance B) + 2 (weight A)(weight B)( covariance)
i try using the same number for both of the equation but doesn’t yield the same result. Are those two formula the same?
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