When Assessing the Risk Impact of Adding a New Security

question 70

Multiple Choice

When assessing the risk impact of adding a new security to a portfolio,it is necessary to consider the

• A) New securities variance
• B) Variance of every security in the portfolio
• C) Weight of every security in the portfolio
• D) Average covariance of the new security with every security in the portfolio
• E) All of the above

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Definitions:

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, in contrast to the null hypothesis.

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