Final answer:
The weighted average standard deviation of a portfolio is equal to the square root of the weighted average variance of the individual investments in the portfolio. To calculate the weighted average standard deviation, you need to know the standard deviations of each investment and their respective weights in the portfolio.
Step-by-step explanation:
The weighted average standard deviation of a portfolio is equal to the square root of the weighted average variance of the individual investments in the portfolio. To calculate the weighted average standard deviation, you need to know the standard deviations of each investment and their respective weights in the portfolio.
You can use the formula:
Weighted Average Standard Deviation = √(w1^2 * s1^2 + w2^2 * s2^2 + ... + wn^2 * sn^2)
where w1, w2, ..., wn are the weights of the investments and s1, s2, ..., sn are their respective standard deviations.