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:

Strikes

Work stoppages caused by the mass refusal of employees to work, aimed at protesting against employers' terms.

Lockouts

An action taken by employers to prevent employees from working during a labor dispute, aimed at pressuring the workers to accept certain conditions.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions, officially known as the Labor Management Relations Act.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.