115 CFA
File: Portfolio Management - Reading 52 - 5. Portfolio Risk

5. Portfolio Risk

e. calculate and interpret portfolio standard deviation;

f. describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated;

What is covariance?
The covariance is an absolute measure of movement and is measured in return units squared.

(There is a ton of applied knowledge in this reading, but nothing to flashcard.)

  • CFA