Finance Chp 13 Quiz 2

Finance Chp 13 Quiz 2 - Question 1 1. If a stock portfolio...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 1. If a stock portfolio is well diversified, then the portfolio variance: Answer will equal the variance of the most volatile stock in the portfolio. may be less than the variance of the least risky stock in the portfolio. must be equal to or greater than the variance of the least risky stock in the portfolio. will be a weighted average of the variances of the individual securities in the portfolio. will be an arithmetic average of the variances of the individual securities in the portfolio. 0.1 points Question 2 1. The standard deviation of a portfolio: Answer is a weighted average of the standard deviations of the individual securities held in the portfolio. can never be less than the standard deviation of the most risky security in the portfolio. must be equal to or greater than the lowest standard deviation of any single security held in the portfolio. is an arithmetic average of the standard deviations of the individual securities which comprise the portfolio. can be less than the standard deviation of the least risky security in the portfolio.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Finance Chp 13 Quiz 2 - Question 1 1. If a stock portfolio...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online