When a Security Is Added to a Portfolio the Appropriate

question 74

Multiple Choice

When a security is added to a portfolio the appropriate return and risk contributions are:

• A) the expected return of the asset and its standard deviation.
• B) the expected return and the variance.
• C) the expected return and the beta.
• D) the historical return and the beta.
• E) these both cannot be measured.

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Definitions:

Recovered Memories

Memories of traumatic events that are suddenly recalled after being unconsciously blocked for a period of time.

Misinformation Effect

The misinformation effect occurs when a person's recall of episodic memories becomes less accurate due to post-event information.

Misinformation Effect

The phenomenon where a person's recall of episodic memories becomes less accurate due to post-event information, often leading to memory distortion.

Proactive Interference

A phenomenon where old memories hinder the ability to remember new information.