Which One of the Following Statements Is Correct Concerning the Standard

question 28

Multiple Choice

Which one of the following statements is correct concerning the standard deviation of a portfolio?

• A)The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio.
• B)The greater the diversification of a portfolio, the greater the standard deviation of that portfolio.
• C)Standard deviation measures only the systematic risk of a portfolio.
• D)Standard deviation is used to determine the amount of risk premium that should apply to 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.

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Definitions:

Buying Center

A group of individuals within an organization who are involved in the process of making purchasing decisions.

IT Managers

Professionals responsible for overseeing and managing the information technology (IT) needs and infrastructure within an organization.

Influencers

Individuals who have the power to affect purchasing decisions of others because of their authority, knowledge, position, or relationship with their audience.

Influencers

Individuals who have the power to affect the purchase decisions of others because of their authority, knowledge, position, or relationship with their audience.