Which of the following statement(s) is/ are correct? Select one or more: Portfolio standard deviation is usually less than the weighted average of the standard deviation of the constituent investments. Portfolio standard deviation is usually greater than the weighted average of the standard deviation of the constituent investments. For perfectly positive correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment. For perfectly negatively correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment.
Which of the following statement(s) is/ are correct? Select one or more: Portfolio standard deviation is usually less than the weighted average of the standard deviation of the constituent investments. Portfolio standard deviation is usually greater than the weighted average of the standard deviation of the constituent investments. For perfectly positive correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment. For perfectly negatively correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13QTD
Related questions
Question
22)
Which of the following statement(s) is/ are correct?
Select one or more:
Portfolio standard deviation is usually less than the weighted average of the standard deviation of the constituent investments.
Portfolio standard deviation is usually greater than the weighted average of the standard deviation of the constituent investments.
For perfectly positive correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment.
For perfectly negatively correlated investments portfolio standard deviation is equal to the weighted average of the standard deviation of the constituent investment.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT