The riskiness of individual assets
A) should be considered for the asset in isolation.
B) should be considered in the context of the effect on overall portfolio volatility.
C) should be combined with the riskiness of other individual assets in the proportions these assets constitute the entire portfolio.
D) should be considered in the context of the effect on overall portfolio volatility and should be combined with the

Question

Quizplus · Accepted Answer

The relevant risk is portfolio risk; thus, the riskiness of an individual security should be considered in the contextof the portfolio as a whole.

The Riskiness of Individual Assets