If a stock portfolio is well-diversified, then the portfolio variance Group of answer choices -will be a weighted average of the variances of the individual securities in the portfolio. -will equal the variance of the most volatile stock in the portfolio. -must be equal to or greater than the variance of the least risky stock in the portfolio. -may be less than the variance of the most volatile stock in the portfolio. -will be an arithmetic average of the variances of the individual securities in the portfolio.

If a stock portfolio is well-diversified, then the portfolio variance Group of answer choices -will be a weighted average of the variances of the individual securities in the portfolio. -will equal the variance of the most volatile stock in the portfolio. -must be equal to or greater than the variance of the least risky stock in the portfolio. -may be less than the variance of the most volatile stock in the portfolio. -will be an arithmetic average of the variances of the individual securities in the portfolio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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