In a Three-Asset Portfolio, the Standard Deviation of the Portfolio

question 84

True/False

In a three-asset portfolio, the standard deviation of the portfolio is one-third of the square root of the sum of the individual standard deviations.

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Definitions:

Small NFPOs

Not-for-profit organizations that are relatively small in scale, size, or financial activity.

Revenue Recognized

The process of recording income when it is earned and realized or realizable, according to the principles of accounting.

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.