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The standard deviation of a portfolio is a weighted average of the standard deviations of the individual securities held in that portfolio. can be less
The standard deviation of a portfolio
is a weighted average of the standard deviations of the individual securities held in that portfolio. | ||
can be less than the weighted average of the standard deviations of the individual securities held in that portfolio. | ||
measures the amount of diversifiable risk inherent in the portfolio. | ||
is a measure of that portfolio's systematic risk. | ||
serves as the basis for computing the appropriate risk premium for that portfolio.. |
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