Which One of the Following Statements Is Correct Concerning the Standard

question 122

Multiple Choice

Which one of the following statements is correct concerning the standard deviation of a portfolio?

• A) The greater the diversification of a portfolio, the greater the standard deviation of that portfolio.
• B) The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio.
• C) Standard deviation is used to determine the amount of risk premium that should apply to a portfolio.
• D) Standard deviation measures only the systematic risk of a portfolio.
• E) The standard deviation of a portfolio is equal to a weighted average of the standard deviations of the individual securities held within the portfolio.

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Definitions:

Gestural Language

is a form of non-verbal communication using movements of the hands and body to convey messages.

Deaf Children

Children experiencing significant hearing loss, impacting their ability to process linguistic information through hearing.

ASL

American Sign Language, a complete, natural language that serves as the predominant sign language of Deaf communities in the United States and most of Anglophone Canada.

Critical Period

A critical period is a specific time during development when the brain is particularly receptive to acquiring certain skills or knowledge, such as language or vision.