Are the Expected Return and Standard Deviation of a Portfolio

question 45

Essay

Are the expected return and standard deviation of a portfolio both weighted averages of the individual security's expected returns and standard deviations? If not, what other factors are required?

---

Definitions:

Biological Factors

Elements within an organism's biology that influence its behavior, health, and development, including genetics, brain chemistry, and hormone levels.

Unpredictable Environment

A setting or situation where changes and occurrences are random or difficult to anticipate, often causing stress or anxiety.

Mental Disorder

Any behavior or emotional state that causes an individual great suffering, is self-destructive, seriously impairs the person’s ability to work or get along with others, or makes a person unable to control the impulse to endanger others.

Self-Destructive

Engaging in behavior that is harmful or potentially harmful to oneself.