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.

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Definitions:

Metalworker

A craftsman skilled in creating objects out of metal through various techniques like forging, welding, and casting.

Romanesque

“Roman-like.” A term used to describe the history, culture, and art of medieval western Europe from ca. 1050 to ca. 1200.

Rainer of Huy

A medieval artist from the Meuse region, known for his work in bronze, particularly baptismal fonts that combine Romanesque and Gothic styles.

Baptistery

In Christian architecture, the building used for baptism, usually situated next to a church. Also, the designated area or hall within a church for baptismal rites.