Milo wants to know the about the standard deviation of a portfollo versus a sing

Question

Milo wants to know the about the standard deviation of a portfollo versus a single investment. You explain that the standard deviation of a portfolio: O Can never be less than the standard deviation of the most risky security in the portfolio. Must be equal to or greater than the lowest standard deviation of any single security held in the portfolio. O Is an arithmetic average of the standard deviations of the individual securities which comprise the portfolio. Can be less than the standard deviation of the least risky security in the portfolio. O Is a weighted average of the standard deviations of the individual securities held in the portfolio.

Explanation / Answer

Option b is correct must be equal to or greater than the lowest standard deviation od any single security held in the portfolio because standard deviation lies within the range of standard deviation of the portfolio.

Best of luck. God Bless

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