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.

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Definitions:

Self-Incrimination

The act of exposing oneself to prosecution by making statements or producing evidence that can be used as an admission of guilt.

Verbal Testimony

Evidence provided orally by a witness during a trial or hearing.

Fifth Amendment

An amendment to the U.S. Constitution that protects individuals against self-incrimination, ensures due process of law, and provides other protections against government abuses.

Self-Incrimination

The act of implicating oneself in a crime, which is protected against by the Fifth Amendment in the United States Constitution.