The Addition of a Negative Risk Asset to a Portfolio

question 70

Multiple Choice

The addition of a negative risk asset to a portfolio of assets will:

• A) increase the portfolio's expected return.
• B) decrease the portfolio's expected return.
• C) increase the portfolio's expected volatility.
• D) decrease the portfolio's expected volatility.

---

Definitions:

David Wechsler

A psychologist known for developing several widely used intelligence scales, including the Wechsler Adult Intelligence Scale (WAIS).

Understanding of Intelligence

The comprehension of the nature, measurement, and implications of cognitive abilities and processes.

Measured

Measured refers to something that has been quantitatively assessed or determined using specific instruments or criteria.

Army Alpha

A group-administered intelligence test developed for the U.S. Army during World War I to assess recruit literacy and mental ability.