A portfolio is comprised of ﬁve risky stocks. The standard deviations of these stocks are 5.6%, 12.8%, 2.3%, 8.9%, and 10.2%. The standard deviation of the portfolio:
A) Is equal to the arithmetic average of the individual standard deviations.
B) Must be greater than 2.3%.
C) Must equal that of the market.
D) Is equal to the weighted average of the individual standard deviations.
E) Cannot be determined from the information provided.

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The Answer of A portfolio is comprised of ﬁve risky stocks. The standard deviations of these stocks are 5.6%, 12.8%, 2.3%, 8.9%, and 10.2%. The standard deviation of the portfolio:
A) Is equal to the arithmetic average of the individual standard deviations.
B) Must be greater than 2.3%.
C) Must equal that of the market.
D) Is equal to the weighted average of the individual standard deviations.
E) Cannot be determined from the information provided.

A Portfolio Is Comprised of ﬁVe Risky Stocks