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If a portfolio has three stocks; GE, IBM and DIS weighted as 45%, 30% and 25%, respectively. If the standard deviation for GE is 12%,
If a portfolio has three stocks; GE, IBM and DIS weighted as 45%, 30% and 25%, respectively. If the standard deviation for GE is 12%, IBM is 16% while for DIS is 10% . The covariance between those three stocks is .0150. What is the standard deviation of this portfolio?
WHICH ONE OF THE FOLLOWING IS ELIMINATED, OR AT LEAST GREATLY REDUCED, BY INCREASING THE NUMBER OF LOW CORRELATED INDIVIDUAL SECURITIES HELD IN A PORTFOLIO : a.Unique risk b.total risk c.systemic risk d. all of the answers e. market risk
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