The standard deviation of a portfolio Group of answer choices -is not a weighted average of the standard deviations of the individual securities held in that portfolio. -cannot be less than the weighted average of the standard deviations of the individual securities held in that portfolio. -measures the amount of diversifiable risk inherent in the portfolio. -is a measure of that portfolio's systematic risk. -serves as the basis for computing the appropriate risk premium for that portfolio..
The standard deviation of a portfolio Group of answer choices -is not a weighted average of the standard deviations of the individual securities held in that portfolio. -cannot be less than the weighted average of the standard deviations of the individual securities held in that portfolio. -measures the amount of diversifiable risk inherent in the portfolio. -is a measure of that portfolio's systematic risk. -serves as the basis for computing the appropriate risk premium for that portfolio..
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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The standard deviation of a portfolio
Group of answer choices
-is not a weighted average of the standard deviations of the individual securities held in that portfolio.
-cannot be less than the weighted average of the standard deviations of the individual securities held in that portfolio.
-measures the amount of diversifiable risk inherent in the portfolio.
-is a measure of that portfolio's systematic risk.
-serves as the basis for computing the appropriate risk premium for that portfolio..
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