Question
The standard deviation of a portfolio's return is lower than those of the two securities, A and B. What is the intuition behind this? Is
The standard deviation of a portfolio's return is lower than those of the two securities, A and B. What is the intuition behind this? Is it always the case? Examine how the returns on these two securities behave. Do they move together or in opposite directions?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
