The Standard Deviation of a Portfolio Is a Function Only

question 31

True/False

The standard deviation of a portfolio is a function only of the standard deviations of the individual securities in the portfolio and the proportion of the portfolio invested in those securities.

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Definitions:

Canadian Common Stocks

Shares of ownership in Canadian corporations that entitle holders to dividends and voting rights.

Risk

The exposure to uncertainty or the variability of returns associated with a given asset or investment.

Canadian Common Stocks

Shares representing ownership in Canadian companies, providing voting rights and potential dividends.