When calculating the risk of a portfolio

Assignment Help Financial Management

Reference no: EM13950265

Which of the following statements is correct?

A. When calculating the risk of a portfolio, you should adjust the process by the covariance, or interrelationship, of security price dispersion.

B. When calculating the risk of a portfolio, you should add the weighted average of the standard deviation of each member of the portfolio.

C. When calculating the risk of a portfolio, you should find the weighted average return of the members of the portfolio and divide by the mean standard deviation of the members.

D. When calculating the risk of a portfolio, you should adjust the process by the correlation coefficient of security price dispersion.

Reference no: EM13950265

Questions Cloud

Why consumer demand has decreased dramatically : As the marketing director for a large retailer, you have been given the task of understanding why consumer demand has decreased dramatically for one of the company's store-brand signature products. To understand this outcome, you will need to gath..

Commercial paper : Commercial paper is:

Find the price of a prepaid four year forward contract : The current price of a stock is 100 and the continuously compounded interest rate is 4%. A dividend will be paid every quarter for the next 4 years, with the first divident paid 3 months from now. The amount of the first divident is 2, and each subse..

Why not just build the system in whatever way seems : Why is it important to use systems analysis and design methodologies when building a system? Why not just build the system in whatever way seems to be quick and easy? What value is provided by using an engineering approach?

When calculating the risk of a portfolio : When calculating the risk of a portfolio, you should adjust the process by the covariance, or interrelationship, of security price dispersion. When calculating the risk of a portfolio, you should add the weighted average of the standard deviation of ..

Dollar-weighted return rate of return on this account : Howard gives his money manager 100,000 at the beginning of the year. in 6 months the account is worth 105,000 and Howard immediately gives the manager an additional 95,000. At the end of the year, the account is worth 220,000. What is the time-weight..

What is the return on the portfolio : What is the return on the following portfolio?

Investors benefit from federal security laws is through : One of the ways investors benefit from federal security laws is through

Portfolios with zero risk lies closest to efficient frontier : Which of the following portfolios with zero risk lies closest to the efficient frontier?

User Account

All Pages