A Portfolio's Risk Is Measured by the Weighted Average of the Standard

question 133

True/False

A portfolio's risk is measured by the weighted average of the standard deviations of the securities in the portfolio.It is this aspect of portfolios that allows investors to combine stocks and thus reduce the riskiness of their portfolios.

---

Definitions:

Intrinsic Motivation

The desire to behave in a certain way because it is enjoyable or satisfying in and of itself.

External Rewards

Incentives provided by an external source, such as money or praise, that motivate individuals to perform certain tasks.

Tension

A mental or physical state resulting from stress or strain, often characterized by feelings of anxiety or discomfort.

Primary Drives

States of tension or arousal that arise from a biological need and are unlearned.