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

question 120

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 actually reduce the riskiness of a portfolio.

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Definitions:

Repression

A defense mechanism where distressing thoughts, memories, or desires are pushed from the conscious mind into the unconscious.

Slips Of The Tongue

Unintentional errors in speech, where words are mispronounced, swapped, or mistakenly inserted, often reflecting a lapse in the speaker's attention or language processing.

Freud

Refers to Sigmund Freud, the founder of psychoanalysis, known for his theories of the unconscious mind, the structure of personality, and the stages of psychosexual development.

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind shared among beings of the same species containing archetypal images.