The Standard Deviation of a Portfolio

question 48

Multiple Choice

The standard deviation of a portfolio:

• A)is a measure of that portfolio's systematic risk.
• B)is a weighed average of the standard deviations of the individual securities held in that portfolio.
• C)measures the amount of diversifiable risk inherent in the portfolio.
• D)serves as the basis for computing the appropriate risk premium for that portfolio.
• E)can be less than the weighted average of the standard deviations of the individual securities held in that portfolio.

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Definitions:

Crowdfunding Model

A method of raising capital through the collective effort of friends, family, customers, and individual investors.

Video Pitch

A brief presentation, delivered via video, that outlines an idea or business proposal to potential investors or partners.

Formal Proposal

A detailed and structured plan or suggestion, typically presented in writing, aiming to convince others of a particular course of action.

Crowdfunding

Raising small amounts of money from a large number of people, typically via the Internet, to finance a new business venture.