When Assessing the Risk Impact of Adding a New Security

question 70

Multiple Choice

When assessing the risk impact of adding a new security to a portfolio,it is necessary to consider the

• A) New securities variance
• B) Variance of every security in the portfolio
• C) Weight of every security in the portfolio
• D) Average covariance of the new security with every security in the portfolio
• E) All of the above

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Definitions:

Vocalizations

The production of sounds with the voice, as a form of communication among humans or other animals.

Symbols

Objects, figures, or colors used to represent ideas or concepts.

Influence Thoughts

The ability to affect or alter someone's thinking patterns or beliefs through various means, including persuasion, information provision, or example.

Create Perceptions

The process of forming an understanding or interpretation of something through one's senses and cognitive functions.