Question
A portfolio's standard deviation (total risk) will always be less than the weighted average of the standard deviations of the securities held in the portfolio.
A portfolio's standard deviation (total risk) will always be less than the weighted average of the standard deviations of the securities held in the portfolio.
Is this a true statement?Explain why or why not.
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
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