CHAPTER 21 QUIZ 11 TO 15
11. Risk measurement usually considers only losses rather than the dispersion of all outcome.
12. The expected value is a commonly used measure of dispersion.
13. The expected value for a portfolio is a weighted average of the individual securities' expected values.
14. The standard deviation for a portfolio is a weighted average of the individual securities' standard deviations.
15. The greater the negative correlation between two (or more) securities, the lower the portfolio standard deviation (all else being equal).