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:

McClelland's Acquired Needs Theory

A motivational theory that emphasizes the importance of three needs - achievement, affiliation, and power - in determining worker motivation.

Acquired Needs Theory

A psychological theory that suggests individuals are motivated by their desires for achievement, affiliation, and power, which they acquire over time based on their life experiences.

Need for Affiliation

A person's inherent desire to feel connected to others, seeking social bonds and meaningful relationships.

Need for Achievement

A psychological trait that drives individuals to achieve goals and excel in their endeavors.