When We Combine Shares in a Portfolio, the Amount of Risk

question 53

True/False

When we combine shares in a portfolio, the amount of risk that is eliminated depends on the degree to which the shares face common risks and move together.

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Definitions:

Z Score

A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Scores

Quantitative values assigned to individuals to represent or measure specific traits or outcomes.

Z Score

A metric that shows how far a value stands from the mean within a collection of values, denoted in units of standard deviations.

Scores

Numerical values assigned to represent the performance, achievement, or characteristics of individuals or items.