CHAPTER 21 QUIZ 11 TO 15

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).

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