When calculating the risk of a portfolio

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Which of the following statements is correct?

A. When calculating the risk of a portfolio, you should adjust the process by the covariance, or interrelationship, of security price dispersion.

B. When calculating the risk of a portfolio, you should add the weighted average of the standard deviation of each member of the portfolio.

C. When calculating the risk of a portfolio, you should find the weighted average return of the members of the portfolio and divide by the mean standard deviation of the members.

D. When calculating the risk of a portfolio, you should adjust the process by the correlation coefficient of security price dispersion.

Reference no: EM13950265

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