If the Addition of a Foreign Security to the Portfolio

question 39

True/False

If the addition of a foreign security to the portfolio of the investor decreases the expected return for a given level of risk, then the security adds value to the portfolio.

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Definitions:

Maximum Heart Rate

The highest number of heartbeats per minute during maximum physical exertion.

Rockport Walk Test

A fitness test designed to estimate an individual's aerobic capacity and cardiovascular fitness by measuring the time it takes to walk a mile as fast as possible.

Cardiorespiratory Endurance

The ability of the body's circulatory and respiratory systems to supply fuel and oxygen during sustained physical activity.

Metabolic Equivalents

A physiological measure expressing the energy cost of physical activities as multiples of the metabolic rate at rest.