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Which of the following is true: 1.A portfolio's mean is a weighted average of the mean of its constituents 2.A portfolio's standard deviation is a
Which of the following is true:
1.A portfolio's mean is a weighted average of the mean of its constituents |
2.A portfolio's standard deviation is a weighted average of the standard deviations of its constituents |
3.A portfolio standard deviation depends solely on the variances of its constituents |
4.A portfolio's variance depends on the correlation between its constituents |
5.Answers 1 and 4 are true |
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