The Standard Deviation of a Two-Stock Portfolio Generally Equals the Value-Weighted

question 44

True/False

The standard deviation of a two-stock portfolio generally equals the value-weighted average of the standard deviations of the two stocks.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, from basic physiological needs to self-actualization.

Belongingness

The human emotional need to be an accepted member of a group.

Esteem Needs

In Maslow's hierarchy of needs, these represent the human need for respect, self-esteem, and recognition from others.

Self-actualizing Individuals

People who have achieved the highest level of Maslow's hierarchy of needs, realizing their potential and possessing an ongoing appreciation for life and personal growth.