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The weight and standard deviation of what determines the standard deviation of a:

A. Risk-free asset
B. Both risky and risk-free asset
C. Risky portfolio
D. None of the above

User NolanDC
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1 Answer

6 votes

Final answer:

The weight and standard deviation of a risky portfolio determines its standard deviation.

Step-by-step explanation:

The weight and standard deviation of a risky portfolio determines the standard deviation of the portfolio. A risky portfolio consists of multiple investments with different weights and standard deviations. The standard deviation of the risky portfolio is influenced by both the weights and standard deviations of the individual investments within the portfolio.

User Emad Baqeri
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