Ted Believes That He Currently Owns a Portfolio Which Is

question 365

Multiple Choice

Ted believes that he currently owns a portfolio which is adequately diversified. If he is correct, the addition of a _____ asset to the portfolio will have minimal, if any, effect on the portfolio's _____.

• A) risk-free; beta
• B) risk-free; rate of return
• C) risky; rate of return
• D) risky; beta
• E) risky; standard deviation

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Definitions:

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A psychological technique where an individual attempts to become more likable to their target, often through flattery or other forms of manipulation.

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