Standard Deviation Is the Practice of Combining Assets or Investments

question 41

True/False

Standard deviation is the practice of combining assets or investments in order to reduce risk.

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Definitions:

Complexity

A characteristic of systems or problems that exhibit multiple interrelated components and variables, which can lead to unpredictable outcomes and difficulties in understanding or solving.

Configuration

The arrangement or setup of the components of a system or object.

Technological Interdependence

The degree of interrelatedness of the organization’s various technological elements.

Organizational Complexity

Refers to the level of differentiation and integration within an organization, affecting its structure, processes, and decision-making.