The Standard Deviation of a Portfolio of Assets

question 8

Multiple Choice

The standard deviation of a portfolio of assets

• A) increases as the number of assets in the portfolio increases.
• B) increases as the weight in any particular asset increases.
• C) increases as the standard deviations of the assets change through time.
• D) increases as the assets' expected returns increase.
• E) increases as the assets' covariances increase.

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Definitions:

Replacement

The act of substituting someone or something with another person or thing.

Increase Aggression

A rise in behaviors aimed at causing harm or asserting dominance, often triggered by environmental, psychological, or biological factors.

Physical Punishment

The use of physical force with the intention of causing a child to experience pain but not injury, as a method of correction or control.

Discrimination

Discrimination refers to the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.