If You Want to Increase the Potential Annual Return on Your

question 89

Multiple Choice

If you want to increase the potential annual return on your investment, you probably will need to:

• A) Increase your investment in bonds and lower your investment in stocks
• B) Increase your investment in T-bills and lower your investment in corporate bonds
• C) Reduce the standard deviation of your returns
• D) Reduce the expected variability of your returns
• E) Increase your portfolio's level of risk

---

Definitions:

Possession

The state or fact of owning or holding something, either physically or legally.

Deficiency

The lack of a required or necessary quality, amount, or degree, often used in financial contexts to denote a shortfall.

Foreclosure Auction

A public sale at which property is sold to the highest bidder following foreclosure.

Financial Difficulties

Situations where individuals or organizations face challenges in managing their finances, often leading to debt or bankruptcy.