The variance of a portfolio is determined by the variances of the individual asset classes and the covariance matrix, which captures how the asset classes move in relation to one another.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Classic Portfolio Investment Methodology White Paper

Sources

• Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Wealthfront via serper

Referenced by nodes (3)

• asset classes concept
• variance concept
• portfolio concept