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Commerce · Q575

Business Finance

Graduate and Post Graduate · Commerce · question 575

Q575

Which of the following portfolio statistics statements is correct?

A.
A portfolio's expected return is a simple weighted average of expected returns of the individual securities comprising the portfolio
Answer
B.
A portfolio's standard deviation of return is a simple weighted average of individual security return standard deviations
C.
The square root of a portfolio's standard deviation of return equalsits variance
D.
The square root of a portfolio's standard deviation of return equalsits coefficient of variation

Answer: Option A

Solution

Answer: Option A
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