The standard deviation of a portfolio can be lower than the weighted average of individual asset risks due to the benefits of diversification.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (3)

• diversification concept
• Standard deviation concept
• portfolio concept