Are the Expected Returns and Standard Deviation of a Portfolio

question 10

Essay

Are the expected returns and standard deviation of a portfolio both weighted averages of the individual securities expected returns and standard deviations? If not,what other factors are required?

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Definitions:

Opaqueness

The quality of being difficult to see through or understand, often referring to materials that light cannot pass through or to information that is not transparent.

Decant

The process of gently pouring a liquid from one container to another, typically to separate it from settled sediment.

Clarity

The quality of being coherent and intelligible, ensuring easy understanding.

Haemophilus Influenzae

A type of bacteria that can cause various infections, particularly in children, including pneumonia, meningitis, and ear infections.