A Portfolio Manager Is Considering Adding Another Security to His

question 48

Multiple Choice

A portfolio manager is considering adding another security to his portfolio. The correlations of the 5 alternatives available are listed below. Which security would enable the highest level of risk diversification?

• A)0.0
• B)0.25
• C)-0.25
• D)-0.75
• E)1.0

Understand the role of exports and imports in calculating GDP.

Recognize the broad support among economists for the concept of free trade and the mixed views on globalization.

Grasp the impact of foreign tourism on the trade imbalance.

Comprehend the historical movement toward free trade since World War II.

---

Definitions:

Big Data

Immense collections of data that can be examined through computational methods to discover patterns, trends, and links, mainly focusing on human behavior and interactions.

Analytics

The systematic computational analysis of data or statistics, used for the discovery, interpretation, and communication of meaningful patterns in data.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Evidence-Based Management

An approach to making managerial decisions and organizational practices grounded in the best available scientific evidence.