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Commerce · Q136

Financial Management

Graduate and Post Graduate · Commerce · question 136

Q136

Portfolio risk is best measured by the______________.

A.
expected value
B.
portfolio beta
C.
weighted average of individual risk
Answer
D.
standard deviation

Answer: Option C

Solution

Answer: Option C
Solution:
Portfolio risk is best measured by the weighted average of individual risk. Portfolio risk is a chance that the combination of assets or units, within the investments that you own, fail to meet financial objectives.