You Are Considering Adding a New Security to Your Portfolio

question 4

Multiple Choice

You are considering adding a new security to your portfolio. To decide whether you should add the security, you need to know the security's:
I. Expected return
II. Standard deviation
III. Correlation with your portfolio

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

High-Performance Work System

An organizational approach designed to enhance employee effectiveness and productivity through improved job design, training, management practices, and rewards.

Reward Systems

Frameworks within organizations designed to recognize and compensate employees' achievements, contributions, and performance.

High-Performance Work Systems

A set of management practices designed to enhance employee skills, commitment, and productivity in a way that leads to improved competitiveness and success of an organization.

Sales Revenues

The total income generated from the sale of goods or services before any expenses are subtracted.