Which of the Following Guidelines Are Appropriate for Inclusion in a Portfolio

question 53

Multiple Choice

Which of the following guidelines are appropriate for inclusion in a portfolio management policy?
I.diversify among different types of securities and across industry and geographic lines
II.determine the risk level and financial situation of the individual investor
III.utilize beta to help align the portfolio to the risk level of the investor
IV.minimize the standard deviation of each security in the portfolio.

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

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Definitions:

This Parameter

A reference within an object method to the current object.

Java Method

A block of code defined within a class that performs a specific task and can be executed when called upon.

Boolean Value

A boolean value is a basic data type in programming that can only hold one of two possible values: true or false.

Integers Equality

The condition where two integer values are the same in value.