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When two risky securities that are positively correlated but not perfectly correlated are held in a portfolio, A ) the portfolio standard deviation will be
When two risky securities that are positively correlated but not perfectly correlated are
held in a portfolio,
A the portfolio standard deviation will be greater than the weighted average of the
individual security standard deviations.
B the portfolio standard deviation will be equal to the weighted average of the
individual security standard deviations.
C the portfolio standard deviation will always be equal to the securities covariance.
D the portfolio standard deviation will be less than the weighted average of the
individual security standard deviations.
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