You Are Considering Adding a New Security to Your Portfolio

question 4

Multiple Choice

You are considering adding a new security to your portfolio.In order to decide whether you should add the security you need to know the security's _______.
I.expected return
II.standard deviation
III.correlation with your portfolio

• A) I only
• B) I and II only
• C) I and III only
• D) I, II and III

---

Definitions:

U.S. Constitution

The foundational document that outlines the framework of the federal government of the United States, including its institutions and the rights of citizens.

States

Politically organized bodies of government with sovereign power within a defined territory.

Due Process

A fundamental principle of fairness in all legal matters, both civil and criminal, especially in the courts, guaranteeing the right to a fair trial and due process of law.

Fifth Amendment

An amendment to the U.S. Constitution that guarantees several rights related to legal proceedings, including protection against self-incrimination and double jeopardy, and ensures due process.