22. If a portfolio's expected return is equal to the weighted average of the expected returns of...

Question:

22. If a portfolio's expected return is equal to the weighted average of the expected returns of the component securities, why is a portfolio's risk not generally equal to the weighted average ofthe component securities' standard deviations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

Question Posted: