Base your answer on the data: QUESTION 10 3.7037 points Save Answer Venture 1 re

Question

Base your answer on the data:
QUESTION 10 3.7037 points Save Answer Venture 1 returns 435.71% 720.62% 61.89% 628.28% -92.65% 58.88% 466.77% 877.93% 381.73% 301.67% 128.43% Venture 2 returns 945.58% 407.98% 258.69% 667.98% 557.31 % 447.31 % 515.67% 750.77% 913.56% 250.7796 729.79% Venture 3 returns 645.98% -80.22% 10.34% 425.55% 404.47% 523.1496 724.46% 619.37% 582.98% 461.67% 987.53% Venture 4 returns 193.66% 673.71% 90.55% 946.16% 804.22% 4092696 526.97% 340.65% 691.38% 301.87% 619.34% Base your answer on the data: Use the standard deviation as a measure of risk. Based on the Excel formula (=stades) a portfolio composed of 25% of each venture (1,2,3 and 4) has the same risk as each individual venture True False

Explanation / Answer

No, a portfolio of 4 individual ventures can have maximum standard deviation equal to the individual ventures. Since these 4 ventures are not perfectly correlated, the portfolio standard deviation is lower.

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