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Explain how the risk of shares can be calculated by the standard deviation.

1.Explain how the risk of shares can be calculated by the standard deviation.

Your explanation should include the usage of the dispersion statistics, the

normal distribution, and the probability, and how those concepts are

utilized in real life finance.


2.Explain how adding new shares to a portfolio can affect the risk and

return of that portfolio. You should use the concepts of correlation

coefficient and the standard deviation in your explanations. 

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