Standard deviation of portfolio of randomly selected stock

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Which statement below is correct concerning the standard deviation of a portfolio of randomly selected stocks

The greater the diversification of the portfolio, the greater the standard deviation of the portfolio.

The standard deviation of the portfolio is equal to a value weighted average of the standard deviations of the individual securities held in the portfolio.

The standard deviation of the portfolio is equal to the geometric average standard deviation of the individual securities held within that portfolio.

The standard deviation of the portfolio is greater than the arithmetic average of the standard deviations of the individual securities held in the portfolio.

The standard deviation of the portfolio is less than a value weighted average of the standard deviations of the individual securities held in the portfolio.

Reference no: EM131354602

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