A Portfolio's Risk Is Measured by the Weighted Average of the Standard

question 133

True/False

A portfolio's risk is measured by the weighted average of the standard deviations of the securities in the portfolio.It is this aspect of portfolios that allows investors to combine stocks and thus reduce the riskiness of their portfolios.

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Definitions:

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.

Mood Swing

Rapid and often extreme fluctuations in one's emotional state without a noticeable reason.

Refractory Period

A period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Sexual Response Cycle

A sequence of physical and emotional phases that occur during sexual activity, including arousal, plateau, orgasm, and resolution.