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Theoretically, the Standard Deviation of a Portfolio Can Be Reduced

question 67

Essay

Theoretically, the standard deviation of a portfolio can be reduced to what level
Explain.Realistically, is it possible to reduce the standard deviation to this level
Explain.


Definitions:

Big Bank

A colloquial term often used to describe very large multinational banking and financial services corporations.

Capital Contribution

The act of injecting financial resources or assets into a company or partnership by its owners or partners.

Partnership Agreement

A contractual document among partners that outlines the terms, conditions, and operational procedures of a partnership business.

Personal Loan

An unsecured loan provided by financial institutions, based on the borrower's credit history and ability to pay back, for personal use.

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