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Discuss the meaning of the following statements: The standard deviation of any portfolio of stocks can never be higher than the highest individual stock standard
Discuss the meaning of the following statements: The standard deviation of any portfolio of stocks can never be higher than the highest individual stock standard deviation. However, a portfolios standard deviation can be lower than the lowest individual stock standard deviation. [The corollary to this is a portfolios stand-alone risk could be zero even when individual stocks each have a lot of stand-alone risks.]
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