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    Financial Management Theory and Practice Study Set 1
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
  5. Question
    A Portfolio's Risk Is Measured by the Weighted Average of the Standard
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A Portfolio's Risk Is Measured by the Weighted Average of the Standard

Question 120

Question 120

True/False

A portfolio's risk is measured by the weighted average of the standard deviations of the securities in the portfolio.It is this aspect of portfolios that allows investors to combine stocks and actually reduce the riskiness of a portfolio.

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