The Standard Deviation of a Portfolio of Risky Securities Is

question 27

Multiple Choice

The standard deviation of a portfolio of risky securities is

• A) the square root of the weighted sum of the securities' variances.
• B) the square root of the sum of the securities' variances.
• C) the square root of the weighted sum of the securities' variances and covariances.
• D) the square root of the sum of the securities' covariances.

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Definitions:

Speed Dating

An organized social event where individuals have a series of short conversations with potential romantic partners to determine mutual interest.

Matchmaking Gathering

An event or meeting organized with the purpose of facilitating romantic introductions between individuals looking to form a relationship.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone.

Bystander Effect

The tendency for any given bystander to be less likely to give aid if other bystanders are present.