The standard deviation of a portfolio: O measures how much diversification can benefit the portfolio's investor. O equals the weighted average of the standard deviations of the individual securities held in that portfolio. O measures the amount of diversifiable risk inherent in the portfolio. O serves as the basis for computing the appropriate risk premium for that portfolio O is less than the weighted average of the standard deviations of the individual securities held in that portfolio as long as the securities are less than perfectly correlated with each other