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Explain the following statement: “As asset held as part of a portfolio is generally less risky...

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Finance

Explain the following statement: “As asset held as partof a portfolio is generally less risky than the same asset held inisolation.”

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The riskiness of a portfolio is measured by the portfolio variance or standard deviation of the portfolio The formula to calculate the variance of a portfolio consisting of two assets A and B is given by    See Answer
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Explain the following statement: “As asset held as partof a portfolio is generally less risky than the same asset held inisolation.”

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