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Homework answers / question archive / If the standard deviation of a diversified portfolio is 20% and if the stocks in that portfolio are positively correlated, then what would we expect the average standard deviation of stocks in that portfolio to be?   less than 20%   20%   greater than 20%   you would need to know the percentage of each stock invested in that portfolio to determine the answer   None of the above

If the standard deviation of a diversified portfolio is 20% and if the stocks in that portfolio are positively correlated, then what would we expect the average standard deviation of stocks in that portfolio to be?   less than 20%   20%   greater than 20%   you would need to know the percentage of each stock invested in that portfolio to determine the answer   None of the above

Finance

If the standard deviation of a diversified portfolio is 20% and if the stocks in that portfolio are positively correlated, then what would we expect the average standard deviation of stocks in that portfolio to be?

 

less than 20%

 

20%

 

greater than 20%

 

you would need to know the percentage of each stock invested in that portfolio to determine the answer

 

None of the above

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