In Compiling a Portfolio, Which of the Following Should You

question 65

Multiple Choice

In compiling a portfolio, which of the following should you not consider?

• A) Investments that exhibit a high positive correlation
• B) Investments whose values are influenced by similar conditions
• C) Negatively correlated investments
• D) A and B are correct

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Definitions:

Mortgage Note Payable

A mortgage note payable is a legal agreement where the borrower promises to repay a debt used to purchase real estate, secured by the property itself.

Construction

Construction refers to the process of building, assembling, or creating infrastructure, buildings, or other substantial physical structures, involving planning, design, and execution phases.

Installment Payments

Payments made regularly over a period of time to settle a debt or purchase price.

Redemption

Redemption is the process of repurchasing or retiring a financial instrument, such as bonds or preferred stock, by the issuer before its maturity date.