What does the correlation matrix tell us about a portfolio of stocks?

The average return of the stocks The risk-free rate of the portfolio The correlation between any two stocks in the portfolio The total value of the portfolio

What is the correlation between a stock and itself?

0 0.5 1 It depends on the stock

Where in the correlation matrix can you find the correlation of a stock with itself?

Along the diagonals In the first row In the last column Randomly distributed throughout the matrix

What is the relationship between the correlation of Stock A with Stock B and the correlation of Stock B with Stock A?

They are always opposites They are always the same They are unrelated They are sometimes the same, sometimes different

What is the first step in calculating portfolio variance?

Calculating the standard deviation of each stock Assigning weights to each stock in the portfolio Calculating the covariance between each pair of stocks Determining the risk-free rate