Statements regarding diversified portfolios

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Which of the following statements regarding diversified portfolios is NOT true? Group of answer choices

The standard deviation of a portfolio's returns is the weighted average of the standard deviation of the assets in the portfolio.

The return on a portfolio is equal to the weighted average of the return of assets in the portfolio.

The extent to which a diversified portfolio reduces risk is greatest when assets in the portfolio have a low or negative correlation.

Most investors hold a portfolio of investments.

Reference no: EM133073107

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