Question
Which statement below is correct concerning the standard deviation of a portfolio of randomly selected stocks The greater the diversification of the portfolio, the greater
Which statement below is correct concerning the standard deviation of a portfolio of randomly selected stocks
| The greater the diversification of the portfolio, the greater the standard deviation of the portfolio. |
| The standard deviation of the portfolio is equal to a value weighted average of the standard deviations of the individual securities held in the portfolio. |
| The standard deviation of the portfolio is equal to the geometric average standard deviation of the individual securities held within that portfolio. |
| The standard deviation of the portfolio is greater than the arithmetic average of the standard deviations of the individual securities held in the portfolio. |
| The standard deviation of the portfolio is less than a value weighted average of the standard deviations of the individual securities held in the portfolio. |
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
