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

---

Definitions:

Professional Selling

The process and activities required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods and/or services for equitable value.

Break-Even Point

the point at which total costs and total revenue are equal, meaning a business is neither making a profit nor taking a loss, serving as a critical financial analysis metric.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Segmenting

The process of dividing a broader market into smaller, more defined categories of consumers who share similar characteristics or needs.