In this formula: variance_equally weighted portfolio = (1/n)(average variance of all assets in portfolio) + [(n-1)/n](average covariance of all assets in portfolio What does “average variance/covariance” really mean? Is it just a simple arithmetic average of all variances/covariances? I thought it is improper to just add up all the variances and divide by n…will we just likely be given this number if we have to use this formula?