You Are Thinking of Adding One of Two Investments to an Already

question 112

Multiple Choice

You are thinking of adding one of two investments to an already well- diversified portfolio. If you are a risk-averse investor,which one is the better choice?

• A)Security A
• B)Security B
• C)Either security would be acceptable because they have the same beta.
• D)Security B,but only if Security B's required return is greater than 12%

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Ongoing systematic investigation to establish facts or principles or to collect information on a subject.

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A person who emphasizes reason and evidence in forming knowledge and justifying beliefs, typically regarding philosophical and scientific matters.

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The principles or beliefs that form the foundation of political theories and actions.

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