Which One of the Following Statements Is Correct Concerning the Standard

question 86

Multiple Choice

Which one of the following statements is correct concerning the standard deviation of a portfolio?

• A)The greater the diversification of a portfolio, the greater the standard deviation of that
• Portfolio.
• B)The standard deviation of a portfolio can often be lowered by changing the weights of the
• Securities in the portfolio.
• C)Standard deviation is used to determine the amount of risk premium that should apply to a
• Portfolio.
• D)Standard deviation measures only the systematic risk of a portfolio.
• E)The standard deviation of a portfolio is equal to a weighted average of the standard
• Deviations of the individual securities held within the portfolio.

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Definitions:

Gender Typing

The process by which a child becomes aware of their gender and thus behaves accordingly by adopting values and attributes of members of the sex that they identify with.

Sexual Orientation

Sexual orientation is an enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes.

Gender Typing

The process by which a child becomes aware of their gender and thus behaves accordingly by adopting values and attributes deemed appropriate for their biological sex.

Puberty

The period of sexual maturation, during which a person becomes capable of reproducing.