Given a portfolio of 50 shares,how many variance and unique covariance terms can be estimated using the Markowitz approach?

Name: Given a portfolio of 50 shares,how many variance and unique covariance terms can be estimated using the Markowitz approach?
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Question

Quizplus · Accepted Answer

A portfolio of N assets leads to N variance terms and N(N-1)/2 unique covariance terms.Hence,given the portfolio of N = 50,we have 40 variance terms and 50(49)/2 = 1225covariance terms.

Given a Portfolio of 50 Shares,how Many Variance and Unique