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:

Perception

Peoples' mental image or concept of elements in their environment, including information gained through the senses.

Expressive Aphasia

A condition characterized by the loss of the ability to produce language (spoken or written), typically caused by damage to the brain's language areas.

Receptive Aphasia

A language disorder resulting from damage to the brain's language comprehension area, causing difficulty understanding spoken or written language.

Global Aphasia

A severe form of aphasia where individuals lose the ability to understand language, speak, read, or write due to extensive damage to the language areas of the brain.