The ____ of a Portfolio of Two or More Securities

question 84

Multiple Choice

The ____ of a portfolio of two or more securities is equal to the weighted average of the ____ of each of the individual securities in the portfolio.

• A) standard deviation; standard deviation
• B) risk; risk
• C) expected return; expected return
• D) standard deviation; risk

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Definitions:

Equilibrium Price

The price level at which the market's offered goods and demanded goods are in balance.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefits to society from a market transaction.

Equilibrium Price

The market valuation where the supply of products equals the demand for products.

Gains From Trade

The benefits that parties obtain from engaging in voluntary trading, often leading to an increase in overall welfare and efficiencies.