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.

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Definitions:

Market Share

Market share is the percentage of a market (in terms of sales units or revenue) captured by a company or brand compared to its competitors.

Preserve Ongoing Relationships

The act or strategy of maintaining continuous and beneficial interactions and associations with others over time.

Outside Order Taking

A sales process that involves sales representatives visiting potential customers in their locations to take orders directly.

Point-Of-Purchase Displays

Marketing materials or advertising placed next to the products they are promoting, typically found at the point of purchase in stores.