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The image shows equations related to portfolio variance in finance, where weights and covariances of different assets are involved. Here is a breakdown:

1. The first equation shows the general formula for the portfolio variance \( \sigma_p^2 \):
   \[
   \sigma_p^2 = \sigma_1^2 w_1^2 + \sigma_2^2 w_2^2 + 2 \sigma_1 \sigma_2 w_1 w_2 \rho_{12}
   \]
   where:
   - \( \sigma_1^2 \) and \( \sigma_2^2 \) are the variances of assets 1 and 2,
   - \( w_1 \) and \( w_2 \) are the portfolio weights of assets 1 and 2,
   - \( \rho_{12} \) is the correlation between the two assets.

2. The second

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Explore the detailed concepts and calculations of portfolio variance, including the formulas and properties of variance and covariance. Suitable for advanced finance students and practitioners.

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