Lets confirm that you cannot take a value-weighted average


Let's confirm that you cannot take a value-weighted average of component variances (and thus of standard deviations) the same way that you can take value-weighted average expected rates of return and value weighted average market betas.

(a) What would the value-weighted average variance of CDD be?

(b) What is the actual variance of CDD?

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Financial Management: Lets confirm that you cannot take a value-weighted average
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