For a portfolio of N-stocks, the formula for portfolio variance contains A)N variance terms. B)N(N - 1)/2 variance terms. C)N² variance terms. D)N - 1 variance terms.

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The formula for portfolio variance for a portfolio of N-stocks contains N variance terms, one for each stock in the portfolio. These terms account for the individual risk associated with each stock.

For a Portfolio of N-Stocks, the Formula for Portfolio Variance