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Which one of the following statements is correct concerning the standard deviation of a portfolio? Group of answer choices The greater the diversification of a
Which one of the following statements is correct concerning the standard deviation of a portfolio?
Group of answer choices
The greater the diversification of a portfolio, the greater the standard deviation of that portfolio.
The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio.
Standard deviation is used to determine the amount of risk premium that should apply to a portfolio.
The standard deviation of a portfolio is equal to the geometric average standard deviation of the individual securities held within that portfolio.
The standard deviation of a portfolio is equal to a weighted average of the standard deviations of the individual securities held within the portfolio.
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
