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Which of the following statements is true of a portfolio s standard deviation? Multiple Choice It serves as the basis for computing the appropriate risk

Which of the following statements is true of a portfolio

s standard deviation?

Multiple Choice

It serves as the basis for computing the appropriate risk premium for that portfolio.

It is a measure of that portfolio's systematic risk.

It measures the amount of diversifiable risk inherent in the portfolio.

It is a weighted average of the standard deviations of the individual securities held in that portfolio.

It can be less than the weighted average of the standard deviations of the individual securities held in that portfolio.

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