Which One of the Following Statements Is Correct Concerning the Standard

question 122

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.

Identify strategies used to minimize the influence of confounding variables in research.

Understand the purpose of using control and experimental groups in research studies.

Distinguish between experimental and non-experimental research methods.

Recognize the importance of measuring variables appropriately to accurately analyze and interpret research findings.

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