The Most Important Criteria When Adding New Investments to a Portfolio

question 66

Multiple Choice

The most important criteria when adding new investments to a portfolio is the

• A) Expected return of the new investment.
• B) Standard deviation of the new investment.
• C) Correlation of the new investment with the portfolio.
• D) Both a and b
• E) All of the above are equally important

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Definitions:

Fugue State

A rare psychological state wherein an individual loses awareness of their identity or other important autobiographical information and often engages in unexpected travel or new identities.

Dissociative Identity Disorder

A psychological condition where an individual exhibits two or more separate identities or personality states.

Avoidant Personality Disorder

A mental health disorder characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and intense sensitivity to rejection.

Schizophrenia

A psychological dysfunction presenting with disturbances in logical operations, perception of stimuli, mood regulation, and communal interactions.