I’m doing the kaplan cfa 1 first book now and I’m wondering on p.66 what’s going on here:
Why do we take the values 44,180 and 35?
Becuase theya the co-variances.
Combined risks area combination of the indiviual risks and the covariance/correlation between the assets.
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I don’t really understand the question I guess. So for example, what does the value 44 mean under domestic stocks and domestic bonds?
It is the covariance of the two.
I suggested you look up what covariance and correlation are. You need to know these and how to use them for your exam.
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hi its fine
Thanks for the reply! I know what they are but I just find the questions a bit hard in how to implement the concept.