Which One of the Following Statements Is Correct Concerning the Standard

question 46

Multiple Choice

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

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

Ventilator-Acquired Pneumonia

A lung infection that develops in a patient while on mechanical ventilation, posing serious risks due to the patient's already compromised health.

Coronary Artery Bypass

A surgical procedure to restore blood flow to the heart muscle by diverting blood around blocked arteries.

Chlorhexidine

An antiseptic and disinfectant used for skin disinfection before surgery and to sterilize surgical instruments.

Ventilated Patient

A patient who is receiving mechanical ventilation support to maintain adequate breathing.