The standard deviation of a portfolio is determined by the standard deviations of the individual assets (e.g., Stock A at 10%, Stock B at 15%), their respective weights (e.g., 50% each), and the correlation coefficient between them (e.g., 0.3).

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 (2)

• Standard deviation concept
• portfolio concept