Question
Which of the following statements is true of a portfolios standard deviation? Multiple Choice It is an arithmetic average of the standard deviations of the
Which of the following statements is true of a portfolios standard deviation?
Multiple Choice
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It is an arithmetic average of the standard deviations of the individual securities which comprise the portfolio.
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It can be less than the standard deviation of the least risky security in the portfolio.
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It can never be less than the standard deviation of the most risky security in the portfolio.
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It is equal to or greater than the lowest standard deviation of any single security held in the portfolio.
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It is a weighted average of the standard deviations of the individual securities held in the portfolio.
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
