Portfolio Risk Is a Weighted Average of the Individual Security

question 62

True/False

Portfolio risk is a weighted average of the individual security risks.

---

Definitions:

Bankruptcy Process

A legal procedure for dealing with debt problems of individuals or businesses allowing for the restructuring or elimination of debts.

Bankruptcy

A legal process wherein individuals or entities that are unable to repay their debts can seek relief from some or all of their financial obligations.

Debts

Money owed by one party to another under an agreement that repayment will occur at a later date.

Bankrupt Discharged

Refers to the legal status whereby an individual or entity, previously declared bankrupt, has been officially released from most, if not all, debt obligations by a court.