The Standard Deviation of a Portfolio of Risky Securities Is

question 27

Multiple Choice

The standard deviation of a portfolio of risky securities is

• A) the square root of the weighted sum of the securities' variances.
• B) the square root of the sum of the securities' variances.
• C) the square root of the weighted sum of the securities' variances and covariances.
• D) the square root of the sum of the securities' covariances.

---

Definitions:

Protein

Large molecules composed of one or more long chains of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Multicelled Fungi

Organisms from the fungi kingdom that consist of more than one cell, including molds, mushrooms, and yeasts, known for their roles in decomposition and as pathogens.

Spores

Resistant, dormant forms of certain fungi, plants, and bacteria that can survive adverse conditions and give rise to a new individual.

Infectious Disease

Illnesses caused by pathogens such as bacteria, viruses, fungi, or parasites, which are contagious.