Volatility Is a Reasonable Measure of Risk for Large Portfolios

question 97

True/False

Volatility is a reasonable measure of risk for large portfolios, once it is fully diversified.

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Definitions:

Annual Dividend

The total dividend payment a company decides to distribute to its shareholders annually.

Share

Represents an ownership portion in a corporation and entitles the holder to a part of the company's profits and assets.

Annual Dividend

The total dividend payments a company makes to its shareholders in one fiscal year.

Constant Rate

A fixed percentage or value that does not change over time.