ItLs late (in Europe), but ILm sure ILm not missing anything here. The 0.48 in their answer is an error, right? _____________________ Consider an equally-weighted portfolio comprised of 17 assets in which the average asset standard deviation equals 0.69 and the average covariance equals 0.36. What is the variance of the portfolio? A) 32.1%. B) 37.5%. C) 36.77%. D) 36.7%. Your answer: B was incorrect. The correct answer was D) 36.7%. Portfolio variance = ƒÐ2p = (1/n) ƒÐ 21 + [(n-1)/n]cov = [(1/17) x 0.48] + [(16/17) x 0.36] = 0.028 + 0.339 = 0.367 = 36.7%

Why are my apostrophes and little variance symbols coming out all strange? Grrrrrr.

Definitely an error. I’m finding lots of mistakes in the Qbank this time. Found 2 just today.

It’s correct. You have to square the standard deviation because the formula requires variance for the (1/n) part.

Oops. Very stupid of me.

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Ahh yes indeed. Thanks Niblita. I retract my “it´s late in Europe” comment and replace it with “it´s too late in Europe” and, with that, call it a night…