The standard deviation of a portfolio:
A. is a weighted average of the standard deviations of the individual securities held in
B. can never be less than the standard deviation of the most risky security in the
C. must be equal to or greater than the lowest standard deviation of any single security
held in the portfolio.
D. is an arithmetic average of the standard deviations of the individual securities which
comprise the portfolio.
E. can be less than the standard deviation of the least risky security in the portfolio.
Today, you earn a salary of $36,000. What will be your annual salary twelve years from
now if you earn annual raises of 3.6 percent?
Which one of the following statements is correct concerning market efficiency?
A. Real asset markets are more efficient than financial markets.
B. If a market is efficient, arbitrage opportunities should be common.
C. In an efficient market, some market participants will have an advantage over others.
D. A firm will generally receive a fair price when it issues new shares of stock.
E. New information will gradually be reflected in a stock's price to avoid any sudden
change in the price of the stock.